Good day forex traders and readers.
Welcome to another weekly AUD/USD forecast. I am personally a fan of this currency pair as it is often less volatile than other popular currency pairs.
In the previous AUD/USD forecast we noted that the currency pair was testing the middle bollinger band and hence we might expect supportive influence.
Looking at the AUD/USD weekly chart above we note that the currency pair did indeed encountered a support due to the influence of the middle bollinger band as mentioned in my previous forecast.
In the upcoming week, any bearish return will probably need to overcome the middle bollinger band before any further consideration.
Should the bullish momentum continue, we may be looking at a retest of the strong resistance region of 0.94.
With the reports of an US economy that contracted in the first quarter, negative sentiment has set in and reduced the demand for US dollar. The interest rate differential remains high for the Aussie dollar and hence we are probably seeing an increased buy in into the Australian dollar.
Next week brings upon many critical economic releases such as the Australian retail sales and interest rate decisioning. The US Non-Farm Payroll is also due. This may result in a tight trading environment and hence do be careful of any unexpected developments.
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