Greetings forex traders.
How was your week? Hope you made money trading the currencies.
In the previous AUD/USD forecast we noted that currency pair was slightly bullish for the week. It remained within the limits of the lower and middle bollinger bands. The price action was somewhat a doji and this continued to suggest a indecisive situation. The bollinger bands setup remained a good reference and I would be looking at the lower and middle bands as the immediate support and resistance.
Looking at the AUD/USD weekly chart above we note that the currency pair was bullish for the week. The middle bollinger band was tested but the AUD/USD did not manage to breach it.
In the upcoming week, it will be important to monitor the middle bollinger band. For the bullish momentum to continue, the middle bollinger band will need to be breached. 0.725 may function as a resistance too.
Any bearish recovery will likely target the lower bollinger band as an extended bearish objective.
The economic data released indicated that the Australian Unemployment Rate unexpectedly rose from 5.8% to 6.0%. I always mentioned that the employment situation is an important indicator of an economy’s health. Sentiments were probably affected as speculations of a Reserve Bank of Australia easing increased.
Over in the US, a Federal member Bullard mentioned that it may not be prudent to continue hiking interest rates for now. He said that the interest rate hike forecast of the US Federal Reserve may not be as such. This will likely affect the US dollar as the prospect of an interest rate hike in the near future may be affected.
Next week brings important economic releases such as the US unemployment claims and preliminary GDP.
Do join our free mailing list for exclusive updates!