Good day forex traders and readers.
Welcome to another of our popular AUD/USD forecast. How have the Aussie been treating you? Green pips I hope. 🙂
In the previous AUD/USD forecast we noted that the currency pair did achieve the bullish target of 0.8 as expected. We need to be cautious of the region of 0.81 as we could see on the technical chart considerable price action. A bearish recovery would likely see a return to the 0.785 region.
Looking at the AUD/USD weekly chart above we note that the currency pair did turn bearish as a result of the failure to breach 0.81.
The 0.785 bearish target was achieved and now the AUD/USD is testing the support region of 0.765. Should the currency pair manage to push below 0.755, we may be looking at new lows for the AUD/USD.
Dropping down to shorter timeframes may give insights to immediate price actions. Close monitoring is strongly recommended.
The volatility situation of the China economy is spreading to a number of emerging economies and this is likely to be increasing apprehension. Furthermore as the biggest trading partner of Australia, the current situation is likely to influence the Australian economy.
With the recent easing of commodities prices, Australia being a commodity driven economy will likely feel a pinch.
The Rsserve Bank of Australia cash rate event in the early part of the week is crucial as we need to determine the central bank’s stance towards the recent economic developments.
Other critical economic events like the US Non-Farm Payroll will also likely impact the currency pair. Do trade with prudence.
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