AUD/USD Forecast – Aussie Dollar Facing Major Resistance Vs US Dollar
- – The Aussie Dollar started a decent recovery after trading as low as 0.7471 against the US Dollar.
- – There is a major bearish trend line forming with resistance at 0.7530 on the hourly chart of AUD/USD.
- – Recently in Australia, the trade balance report for March 2018 was released by the Australian Bureau of Statistics.
- – The outcome was above the forecast of 650M as there was a trade surplus of 1,527M.
Australia’s Trade Balance
Recently in Australia, the trade balance report for March 2018 was released by the Australian Bureau of Statistics. The market was positioned for a trade surplus of 650M, compared with the last 825M.
The actual result was above the forecast of 650M as there was a trade surplus of 1,527M. Imports of goods and services in March 2018 rose 1%, which was better than the last 0%. Exports of goods and services in March 2018 rose 1%, which was above the last 0%.
The AUD/USD pair is currently trading higher, but it has to break the 0.7530 resistance level to gain further in the near term.
AUD/USD Technical Analysis
The Aussie Dollar declined recently and broke the 0.7500 support area against the US Dollar. The AUD/USD pair even traded below the 0.7480 support and formed a low at 0.7471. Later, it started an upside correction and moved above 0.7500.
The pair also recovered above the 38.2% Fib retracement level of the last decline from the 0.7583 high to 0.7471 low. However, there are many hurdles on the upside near 0.7530 and the 100 hourly simple moving average.
There is also a major bearish trend line forming with resistance at 0.7530 on the hourly chart of AUD/USD. The same trend line is close to the 50% Fib retracement level of the last decline from the 0.7583 high to 0.7471 low.
Therefore, a break above 0.7530 and the 100 hourly SMA is must for more gains in the near term. If the pair fails to move above the 0.7530 resistance, it could resume its downtrend. On the downside, supports are at 0.7500 and 0.7480. A break below 0.7480 and 0.7470 could open the doors for a push towards 0.7450.
Also published on Medium.
