Market Forecast 11/10/2017
The AUDUSD pair recovering from the 0.7730-40 support and eyeing more gains. Gold is placed well above $1285 for a move towards $1300.
AUDUSD – Aussie Dollar Set to Rise Further
- The Aussie Dollar after a steep decline found support just above 0.7740 against the US Dollar.
- There is an ascending channel forming with support at 0.7770 on the hourly chart of the AUD/USD pair.
- Today in Australia, the Westpac Consumer Confidence for Oct 2017 was released by the Faculty of Economics and Commerce Melbourne Institute.
- The outcome was above the forecast of 3%, as there was a rise of 3.6%.
The Aussie Dollar declined sharply this past week and traded below the 0.7800 support region against the US Dollar. The AUD/USD pair traded as low as 0.7732 and is currently correcting higher.
The pair has moved above the 23.6% Fib retracement level of the last fall from the 0.7874 high to 0.7732 low. The best part was a close above the 0.7770 resistance and the 100 hourly simple moving average.
At the moment, there is an ascending channel forming with support at 0.7770 on the hourly chart. On the upside, the channel resistance is near the 50% Fib retracement level of the last fall from the 0.7874 high to 0.7732 low.
Therefore, as long as the pair is above the channel support at 0.7770, there can be more gains going forward.
Australia’s Westpac Consumer Confidence
Today in Australia, the Westpac Consumer Confidence for Oct 2017 was released by the Faculty of Economics and Commerce Melbourne Institute. The forecast was slated for a rise of 3% in the index.
The actual result was above the forecast of 3%, as there was a rise of 3.6%. It was also better than the last rise of 2.5%. The report added that “Consistent reports of an improving global economy may have been a factor behind this lift in confidence”.
Overall, the AUD/USD pair may continue to gain pace and could even break the 0.7820 resistance in the near term.
Gold Price to Gain Momentum
- Gold price rose sharply after trading towards the $1260 support against the US Dollar.
- There is a short-term connecting bullish trend line forming with support at $1287 on the hourly chart of XAU/USD.
There was a sharp decline in Gold price towards the $1260 level against the US Dollar. A low was formed at $1260.49 from where the price started correcting higher.
The price traded above the $1280 resistance and recently posted a high at $1294.11. It is currently correcting lower and already moved below the 38.2% Fib retracement level of the last wave from the $1279 low to $1294 high.
The downside move was protected by a short-term connecting bullish trend line with support at $1287 on the hourly chart. The 50% Fib retracement level of the last wave from the $1279 low to $1294 high also acted as a support.
As long as the trend line support is intact, the price might continue to move higher and could even test the $1300 level.
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