Can AUD/USD Recover Further Above 0.7500?11 July, 2018 by Aayush Jindal in Market Analysis
- The Aussie Dollar recovered after forming a decent support near 0.7300-0.7310 against the US Dollar.
- There was a break above a major bearish trend line with resistance at 0.7395 on the 4-hours chart of AUD/USD.
- Australia’s Home Loans figure in May 2018 increased 1.1%, compared with the forecast of -1.9%.
- Today in the US, the PPI figure for June 2018 will be released, which is forecasted to increase 0.2% (MoM).
AUDUSD Technical Analysis
The Aussie Dollar formed a support base near 0.7300 and started an upside move against the US Dollar. The AUD/USD pair traded above the 0.7400 resistance, and is currently facing resistance near 0.7500.
Looking at the 4-hours chart, the pair moved higher and cleared a few resistances such as 0.7350 and 0.7400. There was also a close above the 0.7400 pivot level and the 100 simple moving average (red, 4-hours).
More importantly, there was a break above a major bearish trend line with resistance at 0.7395 on the same chart. The pair traded above the 0.7450 level and it almost tested the 0.7500 resistance and the 200 simple moving average (green, 4-hours).
A high was formed at 0.7483 and the pair corrected lower. It corrected below the 23.6% Fib retracement level of the last wave from the 0.7310 low to 0.7483 high. However, there is a major support on the downside near 0.7400 and the 100 SMA.
Moreover, the 50% Fib retracement level of the last wave from the 0.7310 low to 0.7483 high is also around 0.7400 to act as support. As long as the pair stays above these supports, it could bounce back.
On the upside, a break above the 0.7480 resistance is needed for an acceleration above the 0.7500 barrier and the 200 SMA.
Economic Releases to Watch Today
- US Producer Price Index June 2018 (MoM) – Forecast +0.2%, versus +0.5% previous.
- US Producer Price Index June 2018 (YoY) – Forecast +3.2%, versus +3.1% previous.
- BoC Interest Rate Decision – Forecast 1.5%, versus 1.25% previous.