AUD/USD Forecast — Aussie Dollar Remains at Risk Vs US Dollar
- - The Aussie Dollar made a short-term top near the 0.7810 level against the US Dollar.
- - There is a major bullish trend line forming with support near the 0.7755 on the hourly chart of AUD/USD.
- - Recently in China, the Gross Domestic Product (GDP) for Q1 2018 was released by the National Bureau of Statistics of China.
- - The outcome was above the forecast of +6.7% as there was a rise in the GDP by 6.8% (YoY).
Recently in China, the Gross Domestic Product (GDP) for Q1 2018 was released by the National Bureau of Statistics of China. The market was positioned for a rise of 6.7% in GDP in Q1 2018 compared with the same quarter a year ago.
The actual result was above the forecast of +6.7% as there was a rise in the GDP by 6.8%. Looking at the quarterly change, there was a rise of 1.4% in the GDP, which was less than the forecast of 1.5%. Moreover, the Chinese Industrial output posted a rise of 6% in Feb 2018 (YoY), less than the forecast of 6.2%.
The AUD/USD pair is currently moving lower and it seems like it remains at a risk of a downside break below the 0.7750 support.
AUD/USD Technical Analysis
The Aussie Dollar traded nicely higher this past week and moved above 0.7750 against the US Dollar. The AUD/USD pair even traded above the 0.7800 handle, but it failed to hold gains above the stated level. A short-term top was formed at 0.7809 and the pair started a downside correction.
It declined and traded towards the 0.7750 support, which prevented declines. There is also a major bullish trend line forming with support near the 0.7755 on the hourly chart of AUD/USD.
The pair is currently holding the 0.7750–60 support, but there are a few bearish signs. To initiate an upside move, the pair has to move above the 61.8% Fib retracement level of the last decline from the 0.7809 high to 0.7751 low.
On the flip side, a break and close below the 0.7750 support may perhaps open the doors for a downside push in the near term.
Originally published at ForexGator.com.