AUD/USD Forecast — Aussie Dollar Placed in Bullish Zone Vs US Dollar
- - The Aussie Dollar recently gained upside momentum and moved above 0.7850 against the US Dollar.
- - There was a break above a major bearish trend line with resistance at 0.7850 on the hourly chart of AUD/USD.
- - Recently in Australia, the Retail Sales for Nov 2017 was released by the Australian Bureau of Statistics.
- - The outcome was above the forecast of +0.4% as there was an increase in sales by 1.2% (MoM).
Australia’s Retail Sales
Recently in Australia, the Retail Sales for Nov 2017 was released by the Australian Bureau of Statistics. The market was positioned for an increase of 0.4% in sales compared with the previous month.
The actual result was above the forecast of +0.4% as there was an increase in sales by 1.2%. The actual was also above the last increase of 0.5%. The report added that:
There were rises for clothing, footwear and personal accessory retailing (1.6 per cent) and cafes, restaurants and takeaways (0.4 per cent). Department stores fell (-1.1 per cent) whilst food was unchanged in November 2017.
The AUD/USD pair remains nicely placed in the bullish zone above 0.7850 and it looks set for more gains.
AUD/USD Technical Analysis
The Aussie Dollar formed a short-term bottom at 0.7805–10 against the US Dollar. The AUD/USD pair made a nice upside move, traded above the 0.7850 and 0.7870 resistance levels, and closed above the 100 hourly simple moving average.
During the upside move, there was a break above a major bearish trend line with resistance at 0.7850 on the hourly chart. The pair traded as high as 0.7881 before correcting lower. It traded below the 23.6% Fib retracement level of the last wave from the 0.7809 low to 0.7881 high.
However, the downside move was protected by the broken bearish trend line at 0.7850. Moreover, the 38.2% Fib retracement level of the last wave from the 0.7809 low to 0.7881 high also acted as a support area.
Overall, it seems like the pair remains in the bullish zone above 0.7850 and the 100 hourly SMA. It will most likely resume its uptrend and it could move back above the 0.7880 level to challenge the 0.7900 handle.
Originally published at — ForexGator.com.