Good day forex traders and readers.
Welcome to another review of the AUD/USD. I hope you had been making money with forex trading. Do be reminded that one of the best way to make money in forex is to follow the trend and practice proper money management.
In the previous AUD/USD forecast we noted that our analysis was accurate and the currency pair hit resistance at the 0.94 region. It was heading towards the support region of 0.865. This region is likely to be a strong support level. The currency pair last visited this region early in the year and resulted in a strong bullish trend.
Looking at the AUD/USD weekly chart above we note that the currency pair did encounter support at the 0.865 region. Once again our analysis was correct. I hope our readers managed to harvest good pips :).
After hitting the region of 0.865, the currency pair had since corrected. While it is bullish for a few weeks now, of concern is that the highs are getting lower suggesting a bullish momentum that is losing steam. We will need to monitor closely on the shorter timeframes.
The U.S. economy continues to impress investors with data that is relatively better than the other global economies. This will definitely influence the take up of US investments and by extension the U.S. currency.
The recent correction across major stock indices had inflicted upon the market a risk aversion sentiment and hence this will likely dampen the Australian dollar for now. A clue to possible risk appetite likewise lies in the equities market.
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