Good day forex traders and readers.
Welcome to the weekend again and I hope you are doing well for your forex.
In the previous AUD/USD forecast we noted that the currency pair was bearish for the week. The forecasted bearish indication was accurate and the AUD/USD went below 0.75. A look at the zoomed out chart suggested an extended bearish target at 0.72.
Looking at the AUD/USD weekly chart above we note that the currency pair was again bearish for the week. It is now at 0.7369 and below the bottom bollinger band.
The extended bearish target of 0.72 that I mention is within reach and continued bearish pressure will likely bring the price action there. With the price action below the bottom bollinger band, many analysts are looking out for a bearish trend. Should the bullish momentum return, we will likely see resistance at 0.75 followed by 0.76.
The U.S. Dollar is running over many currencies now and no doubt the Australian dollar is one of them. The US Federal Reserve indicated of the possibility of an interest rate hike by the end of the year and hence traders are increasing their demand for the USD.
The Australian economy continues to face headwinds due to the depressed commodities. Australia’s largest trading partner China is also facing a correction of sorts and hence demand for Australia’s commodities will probably be reduced.
We need to continue to monitor global sentiments. As long as the commodities and China face dampened sentiment, it is likely that the Aussie dollar remains challenged.
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