AUD/USD Forecast – Aussie Dollar Holding Crucial Support Vs US Dollar
- – The Aussie Dollar is correcting lower from the 0.8028 high against the US Dollar.
- – There are two bullish trend lines forming with support at 0.7985 and 0.7970 on the hourly chart of AUD/USD.
- – Recently in Australia, the Gross Domestic Product for Q2 2017 was released by the Australian Bureau of Statistics.
- – The outcome was in line with the forecast, as there was an increase of 0.8% in the GDP (QoQ).
Australia’s Gross Domestic Product
Recently in Australia, the Gross Domestic Product for Q2 2017 was released by the Australian Bureau of Statistics. The market was positioned for an increase of 0.8% in the GDP compared with the previous quarter.
The actual result in line with the forecast, as there was an increase of 0.8% in the GDP. The yearly change was also positive, as there was a rise in the GDP from the last reading of 1.7% to 1.8% in Q2 2017. The report added that:
The Australian economy grew by 0.8% in seasonally adjusted chain volume terms in the June quarter. Household final consumption expenditure increased 0.7% and government final consumption expenditure increased 1.2%.
Overall, the AUD/USD pair is trading near a major support area of 0.7980-70 and must holds it for a bounce back.
AUD/USD Technical Analysis
The Aussie Dollar recently managed to climb higher above the 0.8000 handle against the US Dollar. The AUD/USD pair traded as high as 0.8028 where it faced sellers and later started correcting lower.
The pair traded lower and moved below the 38.2% Fib retracement level of the last wave from the 0.7940 low to 0.8028 high. However, the pair has reached a major horizontal support area at 0.7980-70 where it may find buyers.
The 50% Fib retracement level of the last wave from the 0.7940 low to 0.8028 high at 0.7984 is also a short-term support. Moreover, there are two bullish trend lines forming with support at 0.7985 and 0.7970 on the hourly chart of AUD/USD.
As long as the pair is above the trend lines and support at 0.7970, it would recover in the near term. Only a close below 0.7970 and the 100 hourly simple moving average could ignite further declines towards 0.7940.
