Aussie Dollar US Dollar

AUD/USD Analysis – Aussie Dollar Sell on Rallies Vs US Dollar

  • The Aussie Dollar is under bearish pressure and trading below the 0.7900 handle against the US Dollar.
  • There is a major bearish trend line with resistance at 0.7900 forming on the hourly chart of AUD/USD.
  • Today, the New Motor Vehicle Sales for July 2017 was released by the Australian Bureau of Statistics.
  • The result was on the lower side, as there was a decline of 2% in sales (MoM).

AUD/USD Technical Analysis

The Aussie Dollar mostly traded lower and followed a bearish path below 0.8000 against the US Dollar. The AUD/USD pair recently traded below the 0.7900 handle to test the 0.7850 support zone.

The pair traded as low as 0.7837 from where a minor consolidation phase was initiated.

There was already a failed attempt to move above the 0.7900 handle and the pair might once again try to clear 0.7900.

AUD/USD Hourly Chart

AUD/USD Technical Analysis

On the upside, there is a major bearish trend line with resistance at 0.7900 forming on the hourly chart of AUD/USD.

At the moment, the pair is trading near the 38.2% Fib retracement level of the last decline from the 0.7918 high to 0.7844 low. There is a chance of further gains in the near term, but sellers are likely to appear around 0.7888 or 0.7900.

An immediate resistance is around the 50% Fib retracement level of the last decline from the 0.7918 high to 0.7844 low at 0.7881. On the downside, the 0.7840 area is a crucial support.

Australia’s New Motor Vehicle Sales

Today, the New Motor Vehicle Sales for July 2017 was released by the Australian Bureau of Statistics. The market was looking for a minor decline of roughly 0.5% in sales compared with the previous month.

The actual result was on the lower side, as there was a decline of 2% in sales. In terms of the yearly change, there was an increase of 1.8%, which was a lot less than the last 3.6%.

The report added that:

The largest upward movement across all states and territories, on a trend basis, was in the Northern Territory (1.9%), continuing an upward trend that began in January 2017.

Overall, the AUD/USD pair may correct higher towards 0.7880 or 0.7900, but most likely to face hurdles on the upside.

About Aayush Jindal 109 Articles
With over 10 years of experience and still counting, Aayush posses great technical and fundamental analysis skills in the Forex, Cryptocurrency and Financial Markets. His Analysis are well-know and famous for engaging with viewers easily. He is from IT background with a lot of passion in the Forex and Cryptocurrency Arena.


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