Good day forex traders and readers.

Welcome to our AUD/USD forecast and I hope you had a great week of forex trading.

In the previous review we noted that the currency pair did encounter support at the 0.865 region. Once again our analysis was correct. It had since hit the region of 0.865 and corrected. Lower highs suggested a bullish momentum that was losing steam.

Technical Analysis

Looking at the weekly chart above, the AUD/USD reacted as per our previous forecast. Bearish pressure struck bringing it down again and resulting yet in another correction. Do be mindful that the currency pair did not achieve a higher high suggesting the possibility of an underlying bearish pressure.

Should the bearish momentum overcome the bullish push, we will be monitoring the support region of 0.8650. Do remember that support and resistance levels are never a single pip.

Fundamental Analysis

The Australian economy continues to creep along as unemployment continues to take a toil. There were reports of a proposed cut to unemployment benefits to trim and position the budget for economic growth. This may not be welcome by all as some fear for their economic security.

With the oil price dropping, many argue that this may be beneficial to Australia as costs go down.

While China’s economic growth has been tapering off, the government was reported to be satisfied as it is still a net growth. We need to continue paying attention as China is a major trading partner of Australia.

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AUD/USD Forecast 17 Nov 14

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