Good day readers.
It is the weekend and of course the best time for us to catch up on our forex charts.
In the previous AUD/USD forecast we noted that the currency pair was bullish for the week. Having said so it was still capped by 0.7850 which is turning out to be a strong bullish resistance.
The price action was confined to the channel of 0.76 to 0.785 and hence it might be a consolidation period. The AUD/USD might test 0.785 again and bearish pressure would likely take it down to 0.76.
Looking at the AUD/USD weekly chart above we note that the currency pair headed down due to bearish pressure. It remained confined within the channel that I mentioned and I like it when my forecast works 😉 . A few readers did write to express thanks for their harvest of pips and to them I say well done! The credit is all yours for taking the trade.
Here we are again at the crucial region of 0.76. While this support held many times previously, we cannot assume that it will continue to do so. I advise everyone who is planning to trade to carefully calculate your risk and reward parameters. Should this level fail, we may expect more bearish momentum.
As far as the bulls are concerned, 0.785 remains as the target to be breached before further upside moves.
The U.S. Dollar mainly held up against many currencies including the Australian dollar. The prospect of an upcoming interest rate hike continues to draw considerable demand. With risk appetite mostly affected by the Greek crisis and slowing China growth, some form of risk aversion may be in the markets.
The China growth impact will likely continue to influence the Australian economy being a major trading partner.
In the upcoming week, we need to continue to monitor the sentiments generated by the Greek crisis developments and US Non-Farm Payroll.
As always proper money management is crucial.