Good day forex traders and forex koalas!
Welcome to our weekly outlook on the AUD/USD and EUR/USD and I hope you are doing well so far. In recent times we have the privilege of having fellow traders Masoud and Elmar providing us their excellent insights. It is always my dream to have a caring forex community! In the upcoming weeks you will see me making continued improvements to the site.
In the previous forecast we noted bullish momentum for both currency pairs but however major resistance regions were just ahead. Risk aversion was reducing then due to developments regarding Greek debts and improving statistics.
Looking at both the AUD/USD and EUR/USD daily charts above we do note that the bullish momentum did not go far. The Aussie performance was weak and the currency pair went down to a previous support region. We may be seeing some volatility here.
While the Euro Zone continues to produce a mixed bag of economic data, this is something we will need to adjust for. The EUR/USD will probably reflect a similar volatile pattern. The budget deficit crisis runs deep and in fact the opinion of our readers via the poll at the home page indicates that many believe that the crisis will last until 2015 and beyond.
The AUD/USD took a big hit this week when it was announced that the Australian budget would probably not produce a surplus as previously estimated. This caused risk aversion and a fall of confidence level towards Australia’s economy.
As we head towards the end of the year, unexpected currency movements may happen due to closing positions and low volume. Trade safely.