Hello forex traders.
How was your week? I hope you made money from forex trading. We are almost at the half year mark and time does flies indeed.
In the previous AUD/USD forecast the currency pair was bullish for the week as expected and had in fact spiked up. I love it when my forecast worked and I love it more when my readers made money! The bullish target remained at 0.8. It was crucial to note that the middle and top bollinger bands were starting to turn bullish too and it might indicate the end of the bearish trend for now.
Looking at the AUD/USD weekly chart above we note that the currency pair did achieve the bullish target of 0.8 as expected. Congrats to our readers.
As we head into the new week, do watch out for the region of 0.81 as we can see on the technical chart there is considerable price action there. Should the resistance fail, we are looking at 0.82.
While the bollinger bands are all turning bullish, it is critical to observe the 0.81 region as it is the last major resistance before the next region of 0.865.
A bearish recovery will likely see a return to the 0.785 region.
The bearish commodity situation has stabilized for now and with it, commodity currencies like the Australian dollar are getting more uplift.
Over in the U.S. , recent weaker than expected economic data is causing a drag on sentiments. A number of investors believe that the weaker data may delay the much speculated US Federal Reserve interest rate hike.
As we witness sentiments flip flop, the prudent approach would be to observe the trend. Never go against the trend.
The Rsserve Bank of Australia monetary policy minutes is due next week and close observation is recommended. Any hawkish stance is likely to be beneficial to the Australian dollar and likewise a dovish stance may add downwards pressure. Trade safely.
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