Good day forex traders.
Welcome to another weekly forecast of the AUD/USD and EUR/USD. I hope you had a great trading week. Nothing beats seeing you the dear reader having a harvest of pips 🙂
In the previous forex forecast, we noted that both the AUD/USD and EUR/USD were bullish and testing resistances. Having said so, the RSI of the EUR/USD suggested that the currency pair was moving towards an overbought situation and hence caution was advised since the fundamental situation remained fragile still.
Looking at the AUD/USD daily chart above, the currency pair received a significant amount of bearish pressure. Various support levels were broken and the AUD/USD is now testing 1.0280. Any continued bearish momentum may see 1.0180 next. A bullish scenario will probably see the middle band at about 10400
Looking at the EUR/USD daily chart above we note that it met with a bearish pressure too. Since then the currency pair fell and tested the support of 1.3. This support will remain the immediate support level for any more bearish momentum. Any bullish return will see 1.3200 as an extended target.
This week saw China growth clocking weak numbers. This inevitably affected the global economy and specially the Aussie dollar. China is Australia’s largest trading partner.
The US continues to print weak economic figures and there is growing speculation that the US economy is slowing down.
The move by the Japanese central bank received an endorsement from the G20 and this suggests that more Yen weakness will follow.
The European Central Bank was reported to be apparently suggestive on the possibility of a rate cut. This is affecting sentiments. Furthermore it was reported that there was little growth for the past month for the Euro Zone.
Overall, sentiments are generally weak. Equities prices are falling and this is suggestive of the same. Do trade safely and be careful on buying riskier assets / higher yielding currencies.