Good day forex traders and forex koalas.
Welcome to another weekly forecast of the AUD/USD and EUR/USD currency pairs. In the previous review we noted a divergence between both currency pairs. AUD/USD was bullish while EUR/USD had significant bearish pressure.
Looking at the AUD/USD chart above we note that the currency pair remains bullish and is now testing a previous high. This region is a major resistance point and hence to take care to monitor. We are looking at the region of 1.0630.
Looking at the EUR/USD chart above we note that the currency pair has followed the steps of the AUD/USD and went up north. The region now is a major resistance too and hence close monitoring will be advisable. We are looking at 1.3200 as a possible crucial region.
We are currently seeing a general reverse of risk aversion of the currency markets. In recent times, the US had been showing strong economic data such as it’s US Non-Farm Payroll. Traders and investors are generally encouraged by this. Furthermore things over at the Euro Zone are picking up for now. Greece’s next bailout payout is agreed upon and many are seeing an end of further risk events for the year.
The best strategy we have for now is to monitor the chart action and keep an overview of fundamental developments over the week via the news and reports.