Good day forex traders and koalas!
Welcome to another forecast of the AUD/USD and EUR/USD. I hope you had a great holiday season. It is the start of the new year. New hopes to make good harvests of pips 🙂 Remember your proper money management though!
In the previous AUD/USD and EUR/USD forecast we noted the dangers of the low volume conditions. Unexpected spikes were a possibility. The idea of a budget year without surplus brought about a dent to the AUD/USD while the US fiscal cliff solution for now brought about some relief.
Looking at the AUD/USD chart above, we note a crazy week for the currency pair. The forex gap at the start of the week was unexpected and remember how I always felt about forex gaps? SUPER HIGH RISK ! Indeed so, the currency pair fought to dip below in an attempt to ” close the gap ” and after which it bounced right up. A low volume condition probably contributed to it too. Such moves could easily wipe out trades on both sides. I urge you spend some time next week to wait for the price action to stabilize first.
Looking at the EUR/USD chart above, we note that the currency pair remained depressed. If bearish pressure remains, there is a possibility of a test on 1.3. A come back of the bulls may see 1.3150 tested. These two regions display significant historical activities.
The US Non-Farm Payroll came in slightly better than expected. It is positive and hence jobs were added. Having said so the unemployment rate slipped to 7.8%. This mixed bag of results gave neither great relief nor extreme apprehension.
The US Federal Reserve was reported to have mentioned that the quantitative easing exercises will end 2013. However no exact date was mentioned leaving much space for apprehension.
Over in the Euro Zone, while the budget deficit crisis remains a challenge, equities performance suggests an improving sentiment. If this keeps up, we may see a stronger euro currency too.
Likewise for the Australian economy, the equity index ASX 200 remains bullish and this will probably see the Aussie dollar having space on the up side.