Good day forex traders and forex koalas!
Welcome to another weekend and I hope you had a good trading week. Did you make money from your forex trading? Regardless do remember that proper money management is crucial.
In the previous AUD/USD forecast we noted that the currency pair is facing a strong bullish resistance. Fundamentally the market conditions were risk on due to recent developments and hence higher yielding assets such as the Aussie dollar benefited.
Looking at the AUD/USD chart above we noted that the currency pair had failed to breach the resistance line of 1.0560 again.
SMA 20 = Bullish
SMA 50 = Bullish
Both SMAs remain bullish. This suggests that the bullish pressure may still be lurking around. As we are now at another technical support and resistance region ( 1.0430 ), i advise close monitoring to see how the currency pair reacts.
Looking at the current market conditions, it seems that the initial bullish sentiments are reclining for now. Earlier this week we noted that European manufacturing is down. There was speculations of a Spanish bailout again and that dampened sentiments.
In issues right in Australia’s neighbourhood, the dispute between China and Japan regarding a number of islands is taking a toil on the region’s economic outlook too. This comes at a time where China is experiencing a slowdown and will probably further complicate matters.
Reserve Bank of Australia RBA monetary policy meeting minutes will be released early week followed by a few economic data. Be careful of unexpected developments.
Trade safely and remember to monitor 1.0430 first.