Good day forex traders and koalas!
I am signing in from another country and i apologize for any delays during this few days.
In the previous AUD/USD forecast we noted conflicting signals from the SMAs. As the Greek polls was around the corner, no one could predict the outcome. We did observe better risk sentiments among investors and this was probably attributed to G20 apparent commitments on actions post Greece.
Solution : ProRealTime
In the previous AUD/USD forecast i mentioned a possible hit on 1.02 should the Greece polls turned out to be pro austerity. That happened and 1.02 was tested indeed! I LOVE IT WHEN MY FORECAST WORKS WOAH !
We seem to be at a cross junction of a medium term bearish trend line and a short term bullish trend line. I will be staying on the lines on Monday to determine the market sentiment first before any commitment of trades.
Despite the Greek polls turning out to be pro austerity, the Euro Zone budget deficit crisis continues to plague the markets. The European Central Bank was reported to be wiling to ease it’s collateral requirements to enable greater access to funds for the debt laden banks. However there was opposition to this. This probably caused negative sentiments as investors fear of a Spanish fall out.
An upcoming European economic summit is due this week and many are looking at this summit to be pivotal. Fears of a sell off is strong if nothing concrete is planned.
The S&P / ASX 200 continues to linger near the 4000 mark. This suggests that markets dynamics remain largely unchanged.
As long as the markets remain depressed, a bullish Australian dollar will probably be a challenge.
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