Good day forex traders and koalas!
How have you been? Hope you have been good and i think the AUD/USD has been good to us koalas too 🙂
In the previous AUD/USD forecast we noted resistance at the SMA 200 region. Should this region fall, we would expect more bullish momentum to surface. China’s GDP growth of 7.6% was encouraging for the Australian dollar being the largest trading partner.
Looking at the chart above, the SMA 200 did fall and the AUD/USD rose to meet the next resistance indicated by me which is 1.0430. YES I LOVE IT WHEN MY CHARTS WORK!
SMA 20 = Bullish
SMA 50 = Bullish
We are seeing both SMAs bullish now and the possibility of a continued bullish move is present. Having said so, 1.0430 is yet another resistance to tackle. If this fails, we can consider the extended bullish target of 1.0560.
The Australian dollar remains resilient. There were more negative news regarding troubled Spanish banks and the EUR/USD took a beating.
This is not to say that the Aussie dollar is immune as i mentioned many times, no one in this world.. no one can escape from the finanical tsunamis unleashed so often. However the AUD/USD is better built to withstand! We are pretty much still in a bullish trend. A report mentioned that the Australian dollar usually rallied more than others during risk taking days and drops less than others during risk aversion days. This is exactly what i have been saying. The resilience of the Koala currency 🙂
Do be careful however as the Australian employment market is taking a bump. This coming week features the monetary policy meeting minutes release. Investors will be monitoring for clues to policy actions.
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