Good day forex traders and readers.
Welcome to our AUD/USD forecast. For readers new to our site, this is also a favorite currency pair of mine as it is often less volatile than the EUR/USD.
We last visited this currency pair sometime back and it has made good progress. While a few readers often ask me why I have not commented on this currency pair, most others are just focused on the EUR/USD. Well never put all your eggs in one baskets. 🙂
Looking at the AUD/USD weekly chart above we note that the currency pair has been on a steady bearish down trend since September last year. I am maintaining a position from just above 0.9 and I am contented. I did take some profit as I believe in proper money management. A few readers wrote in to express their thanks and all I can say is I am happy for you all!
The technical chart above suggests a significant support at the region of 0.7620. I am not a big risk taker and hence I am looking at this level closely to monitor the price action.
Any bullish recovery may target 0.7780.
I have mentioned previously that the Australian economy is highly dependent on commodities and hence the current slump in commodity prices is exerting a drag. For example a comparison to oil prices places the current bearish trend right about the time oil started to dip.
Any reversal will probably need a major change of the current fundamental situation.
Having said the above, it is most unfortunate that most people believe in a get rich quick crystal ball kind of approach to forex. I had 3 margin calls before I woke up and hence I started this website to share about my mistakes. Understanding the market is critical to a forex success.
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