The Aussie dollar traded higher recently versus the US Dollar, but faces a monster challenge at 0.7700.
AUD/USD Weekly Forecast – Look At Big Picture For Aussie Dollar
· The Aussie dollar this past month after trading as low as 0.7440 versus the US Dollar found support.
· The AUDUSD pair recovery sharply, but currently facing sellers near 0.7700.
· There is a monster bearish trend line formed on the daily chart, acting as a resistance.
AUD/USD Technical Analysis
The Aussie dollar was mostly in an uptrend during the past few weeks against the US dollar. Every dip below 0.7500 was bought. The AUDUSD pair is currently trading near the last swing high, but facing a major challenge near 0.7700.
As can be seen from the daily chart, there is a monster bearish trend line formed, acting as a hurdle for more gains above 0.7700.
It looks like the Aussie dollar may struggle once again if the pair retest 0.7700. However, there will be a break sooner or later since the pair remains supported on the downside. The daily RSI is also above the 50 level, which is a positive sign in the long term.
Trade Idea – Selling near 0.7700-20 may be considered for one last time with a stop of 20-30 pips in the short term.
There were no major releases in Australia, and the market was mostly driven by the US Dollar moves. Today, the TD Securities Inflation figure was released by The University of Melbourne - Faculty of Economics and Commerce. The
The forecast was slated for a rise of 0.3% in Sep 2016, compared with the previous month. However, the report was positive, as there was an increase of 0.4% in the TD Securities Inflation. In terms of the yearly change, there was a rise of 1.3% in Sep 2016, compared with the same month a year ago. Later this week, there will be a few important releases in the US, which may impact the Aussie dollar and AUDUSD pair in the near term.
Overall, it looks like the AUDUSD pair is about to make the next move, but it won’t be an easy task for the Aussie dollar buyers to break the highlighted resistance zone.