The Aussie dollar recently managed to find support near 0.7550 against the US Dollar, but any major recovery in AUDUSD may find sellers on the upside.
AUDUSD Weekly Analysis – Aussie Dollar Remains Sell Rallies
· The Aussie dollar declined heavily after a failure to break the 0.7700 resistance area against the US Dollar.
· The AUDUSD pair somehow managed to find support near a couple of trend lines on the H4 chart at 0.7550.
· The Australian TD Securities Inflation released today by The University of Melbourne - Faculty of Economics and Commerce posted an increase of 0.2% in Oct 2016.
AUDUSD Technical Analysis
The Aussie dollar this past week traded towards 0.7700 against the US Dollar where it found sellers and moved down. There was a sharp decline of more than 100 pips, taking the AUDUSD pair towards a couple of trend lines on the H4 chart at 0.7550.
The pair is currently moving back higher, and broke the 23.6% Fib retracement level of the last drop from the 0.7708 high to 0.7558 low.
However, the pair is currently struggling to clear the 100 simple moving average (H4). Once there is a break, the pair may trade higher in the short term. However, the upside may remain capped, as there is a monster resistance at 0.7700 where the pair was rejected on many occasions.
Trade Idea – If you are looking to enter a sell trade in the medium term, then consider it near 0.7700 with a stop of around 30-40 pips, and a short-term buy with a close above the 0.7620 level.
Today in Australia, the TD Securities Inflation was released by The University of Melbourne - Faculty of Economics and Commerce. It estimates inflation in the Australian economy and was forecasted to increase.
The outcome was positive, as there was a rise of 0.2% in Oct 2016, compared with the previous month. In terms of the yearly change, there was a rise of 1.5% in Oct 2016, compared with the same month a year ago.
So, there is a chance that the AUDUSD pair may trade towards 0.7680-0.7700, but one must not wait for any major gains in the short term.