AUD/USD Forecast – Aussie Dollar Could Correct In Short Term Vs US Dollar

AUD/USD Forecast – Aussie Dollar Could Correct In Short Term Vs US Dollar

  • – The Aussie Dollar declined heavily and broke the 0.7200 support area against the US Dollar.
  • – There is a major bearish trend line in place with resistance at 0.7235 on the hourly chart of the AUD/USD pair.
  • – Recently in Australia, the Retail Sales report for July 2018 was released by the Australian Bureau of Statistics.
  • – The outcome was below the forecast of +0.3% as there was no change in the retail sales (MoM).

Australia’s Retail Sales

Recently in Australia, the Retail Sales report for July 2018 was released by the Australian Bureau of Statistics. The market was positioned for a rise of 0.3% in the retail sales compared with the previous month.

 

The actual result was below the forecast of +0.3% as there was no change in the retail sales. Looking at the trend estimate, the retail sales increased 0.3% in July 2018, similar to the last reading. The report added that:

 

The following industries rose in trend terms in July 2018: Food retailing (0.4%), other retailing (0.4%), Clothing, footwear and personal accessory retailing (0.5%), Cafes, restaurants and takeaway food services (0.3%), and Department stores (0.1%). Household goods retailing was relatively unchanged (0.0%).

 

The AUD/USD pair recently found support near the 0.7165 level and it seems like the pair could correct higher in the near term.

 

AUD/USD Technical Analysis

The Aussie Dollar faced a lot of selling interest near the 0.7350-0.7360 zone against the US Dollar. The AUD/USD pair started a downside move, broke the 0.7300 and 0.7250 support levels, and also settled below the 100 hourly simple moving average.

 

AUD/USD Technical Analysis Aussie Dollar US Dollar Chart

 

The pair even broke the 0.7200 support area and it almost tested the 0.7150 support.  A low was formed at 0.7165 and the pair is currently correcting higher. An initial resistance is near the 23.6% fib retracement level of the last decline from the 0.7302 high to 0.7165 low.

 

Above the 0.7190 and 0.7200 resistance levels, there is a major bearish trend line in place with resistance at 0.7235 on the hourly chart of the AUD/USD pair.

 

Therefore, if the pair corrects higher from the current levels, it is likely to face sellers near the 0.7200 and 0.7235 levels. On the downside, a break below the 0.7165 low could push the pair back towards the 0.7120 level.


Also published on Medium.

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