Good day forex traders and readers.
Welcome to the weekend of the popular AUD/USD EUR/USD forecast by The Forex Koala! This week brings happy news to our dear readers who are following us all this time 🙂
In the previous AUD/USD forecast we noted that the extended bearish target of 0.8900 remained and from a fundamental point of view, the Reserve Bank of Australia continued to adopt a dovish stance on the Aussie dollar.
In the previous EUR/USD forecast we noted that the bullish target of 1.38 was in sight as positive developments and sentiments in the US and Euro Zone increased the risk appetite of the markets.
Looking at the AUD/USD daily chart above we note that the currency pair has completed the loose head and shoulders chart pattern that I mentioned. While 0.8900 was not hit per se, I always mentioned that support and resistance lines are never a single pip and hence so are targets! I have many readers writing in that they had already took profit! Congratulations 🙂
What happens next is an uncertainty now although the bearish pressure remains. Close monitoring must be done to see if the 0.8900 support will hold.
Looking at the EUR/USD daily chart above we note that the currency pair has achieved the 1.38 bullish target I mentioned previously. Once again I am receiving a number of my readers from the mailing list telling me how happy they are having profited. I love it when my charts work and my readers make money from forex! As I always mentioned, as long as you trade properly, slow and steady profits will come 🙂
I have marked the two major support and resistance levels. Should 1.38 fails, we may see 1.4 next. A bearish correction will attempt to seek 1.36.
As far as the AUD/USD is concerned, the bearish pressure remains. The Reserve Bank of Australia is taking a dovish stance towards the currency and a recent report quoted the mention of 0.85 as a desired value. Gold prices remain depressed putting a strain on the Australian economy.
Looking at the EUR/USD, the positive sentiments surging in the markets continue to push the currency pair higher. Having said so, there are speculations of a tapering announcement next week and hence I will be sure to employ proper money management in case anything unexpected happens.