Aussie dollar after tumbling to 0.7500 against the US Dollar recovered. However, the AUDUSD pair needs to break a major resistance for sustained gains moving ahead.
AUD/USD Weekly Analysis – Can Aussie Dollar Buyers Overcome Hurdles?
- Aussie dollar after testing the 0.7500 support versus the US Dollar gained bids and recovered.
- The AUDUSD pair is trading higher, but faces a monster resistance on the upside.
- There was a crucial economic release in Australian (GDP) recently, which may impact the AUDUSD pair going forward.
AUD/USD Technical Analysis
The Aussie dollar enjoyed a decent upside move this week against the US Dollar. However, soon the party may be over for the Aussie dollar buyers. There is a major resistance waiting on the upside for the AUD/USD pair.
There is a monster bearish trend line on the daily chart of the AUD/USD pair, which may stop the current upside move.
However, if there is a break above the highlighted trend line and resistance area, then there is a chance of a move towards 0.8000. So, if you are planning to sell the Aussie dollar put a stop as a daily close above the trend line.
Sell Idea – Selling AUD/USD near the highlighted trend line and resistance area can be considered as long as it is below it.
Recently in Australia, the Gross Domestic Product report was published by the Australian Bureau of Statistics. The market was expecting an increase of 0.6% in the measure of the total value of all goods and services in Q2 2016, compared with Q1 2016.
However, the outcome missed the mark, as the Gross Domestic Product rose by 0.5%. When we have a look at the yearly change, then the outcome was positive, as there was an increase of 3.3%, more than the forecast of 3.2%. The report added that the “Final consumption expenditure increased 0.8%, contributing 0.6 percentage points to growth in GDP. Private non-financial corporations’ Gross operating surplus increased 2.9% while Compensation of employees increased 0.5%”.
The result did not have a major impact on the AUD/USD pair, but considering the resistance on the upside there can be an effect later if the Aussie dollar buyers fail to gain momentum.