- – The Aussie Dollar corrected sharply from the 0.7972 high against the US Dollar.
- – There are two bullish trend lines forming with support at 0.7920-00 on the hourly chart of AUD/USD.
- – Recently in the US, the Wholesale Inventories report for July 2017 (Prelim) was released by the US Census Bureau.
- – The outcome was below the forecast of +0.3%, as there was an increase of 0.4%.
US Wholesale Inventories
Recently in the US, the Wholesale Inventories report for July 2017 (Prelim) was released by the US Census Bureau. The market was positioned for an increase of 0.3% in the Wholesale Inventories compared with the previous month.
However, the actual result was below the forecast of +0.3%, as there was an increase of 0.4%. On the other hand, the last reading was revised down from 0.7% to 0.6%. The report added that:
Wholesale inventories for July, adjusted for seasonal variations but not for price changes, were estimated at an end-of-month level of $601.2 billion, up 0.4 percent (±0.4 percent)* from June 2017, and were up 3.1 percent (±0.7 percent) from July 2016.
Overall, the AUD/USD pair is very likely to hold the 0.7900 support area and might soon head higher in the near term.
AUD/USD Technical Analysis
The Aussie Dollar gained recently and traded towards the 0.7970-80 levels against the US Dollar where it faced sellers. Later, the AUD/USD pair started a downside move and traded below the 0.7950 support to test the 0.7900 level.
The pair traded as low as 0.7905 where the 100 hourly simple moving average held the downside move and protected further declines. Moreover, there are two bullish trend lines forming with support at 0.7920-00 on the hourly chart of AUD/USD.
These trend lines near 0.7920-00 are very important and likely to hold downsides in the short term. On the upside, an initial resistance is around the 50% Fib retracement level of the last decline from the 0.7972 high to 0.7905 low.
As long as the pair is holding the trend lines near 0.7900 and the 100 hourly SMA, it might move higher. Further above 0.7940, the 76.4% Fib retracement level of the last decline from the 0.7972 high to 0.7905 low at 0.7956 might also act as a short-term resistance for buyers.Tags: AUD/USD Technical Analysis, Aussie dollar, US Dollar