AUD/USD Forecast – Aussie Dollar Struggling Near Major Resistance Vs US Dollar
- – The Aussie Dollar is facing a significant resistance near 0.7435-40 against the US Dollar.
- – There is a key bullish trend line in place with support at 0.7380 on the hourly chart of the AUD/USD pair.
- – Recently in Australia, the Consumer Price Index for Q2 2018 was released by the RBA and republished by the Australian Bureau of Statistics.
- – The outcome was below the forecast of +2.2% (YoY) as there was a rise in the CPI by 2.1%.
Australia’s Consumer Price Index
Recently in Australia, the Consumer Price Index for Q2 2018 was released by the RBA and republished by the Australian Bureau of Statistics. The market was positioned for a rise in the CPI by around 2.2% in Q2 2018 compared with the same quarter a year ago.
The actual result was below the forecast of +2.2% (YoY) as there was a rise in the CPI by 2.1%. Looking at the quarterly change, there was a rise of 0.4%, which was less than the forecast of 0.5%, but similar to the last reading of 0.4%.
The AUD/USD pair struggled to break an important resistance area near 0.7435 and 0.7440, and started a downside move.
AUD/USD Technical Analysis
The Aussie Dollar moved higher from the 0.7330 swing low against the US Dollar. The AUD/USD pair jumped above the 0.7380 and 0.7400 resistance levels, and even settled above the 100 hourly simple moving average.
However, the pair faced a strong resistance area near the 0.7435 and 0.7440 levels. The stated levels also prevented gains above 0.7450 on many occasions. The pair dipped and traded below the 50% Fib retracement level of the last wave from the 0.7359 low to 0.7447 high.
At the moment, the pair is trading near the 0.7400 support and the 100 hourly SMA. Moreover, the 61.8% Fib retracement level of the last wave from the 0.7359 low to 0.7447 high is also acting as a support.
There is also a key bullish trend line in place with support at 0.7380 on the hourly chart of the AUD/USD pair. As long as the pair is above the 0.7380 support, it could make another attempt to break the 0.7440 resistance.
Also published on Medium.
