Good day forex traders.
How was your week of forex trading? As always I hoped you earned lots of pips 🙂
In the previous AUD/USD forecast we noted that the currency pair had eased off after a run for the support of 0.72. We discussed about the trade war between the US and China and the inevitable drag on the Australian economy.
Looking at the AUD/USD weekly chart above we note that the price action remained between 0.72 and 0.74. Neither the support of 0.72 nor resistance of 0.74 was tested. We should monitor closely for clues that may suggest that the AUD/USD is going into consolidation.
The AUD/USD remains in the lower section of the bollinger bands and hence we may still see a comeback of the bearish momentum. It will be good to drop into the shorter timeframes so as to monitor the price action.
The week was an eventful one for the Australian dollar. Scott Morrison won the leadership of the Liberal Party in a party-room ballot. Analysts mentioned that the rise in value of the Australian dollar is likely due to the reduction of uncertainty after the event. Having said so, with the US and China trade war situation having no end in sight, this momentary sentiment may give way to the dovish undertone.
Private capital expenditure for Australia is due to be released in the upcoming week. This gives insight into the economic situation and hence may influence the AUD/USD.