AUD/USD Forecast – Aussie Dollar Signaling Bullish Continuation Vs US Dollar
- – The Aussie Dollar gained traction from the 07200-10 support zone against the US Dollar.
- – There is a major ascending channel in place with support at 0.7340 on the hourly chart of the AUD/USD pair.
- – Recently in Australia, the Construction Work Done in Q2 2018 was released by the Australian Bureau of Statistics.
- – The outcome was above the forecast of +0.7% as there was a rise in the work done by 1.6%.
Australia’s Construction Work Done
Recently in Australia, the Construction Work Done in Q2 2018 was released by the Australian Bureau of Statistics. The market was positioned for a rise of 0.7% in work done compared with the last increase of 0.2%.
The actual result was above the forecast of +0.7% as there was a rise in the work done by 1.6%. Moreover, the Westpac Leading Index for July 2018 released by the Melbourne Institute posted no change, similar to the last reading of 0%.
The AUD/USD pair started a solid rise from the 0.7220 swing low and it broke the 0.7300 and 0.7320 resistance levels.
AUD/USD Technical Analysis
The Aussie Dollar formed a support base near the 0.7200-0.7210 zone and jumped higher against the US Dollar. The AUD/USD pair started an upside move, traded above the 0.7280 and 0.7300 resistance levels, and also settled above the 100 hourly simple moving average.
The pair even traded above the 0.7350 resistance and traded as high as 0.7381. Later, there was a downside reaction and broke the 0.7360 support. It even broke the 23.6% fib retracement level of the last wave from the 0.7295 low to 0.7381 high.
On the downside, there are many supports near the 0.7350 and 0.7340 levels. There is also a major ascending channel in place with support at 0.7340 on the hourly chart of the AUD/USD pair.
The channel support is near the 50% fib retracement level of the last wave from the 0.7295 low to 0.7381 high. Therefore, if the pair slides further from the current levels, it could find support near the 0.7340 level. Below this, it may well test the 0.7320 and 0.7300 levels. On the upside, a break above 0.7380 might push the pair above the 0.7400 level.
Also published on Medium.
