Good day forex traders and readers.
Yet another week has passed and I hope you did well for your forex trading. For me, as long as I am green with profit, that’s a job well done!
In the previous AUD/USD forecast we noted that the currency pair was bullish for the week. It was above 0.94 which might be an indication of possible further bullish advances.
The trading range remained narrow and we needed to continue to monitor the 0.94 region as it remained a crucial support and resistance region.
Looking at the AUD/USD weekly chart above we note that the currency pair was bearish for the week. From a technical point of view, the AUD/USD has been ranging for sometime now with a basis towards the upside as seen from the ascending middle bollinger band.
The current region is a strong resistance area as we can see from October 2013. A definite clearance of this region is needed before any continued attempt to reach parity.
The AUD/USD is once again below 0.94 and hence bearish momentum may return.
The sentiment towards the Australian dollar is probably negative as the Reserve Bank of Australia made dovish comments over the week. It was mentioned that the Australian dollar was too high and there is a possibility of another interest rate cut. Investors are usually very adverse to interest cuts as this often dampens the currency’s value.
It was also reported that the Australian Retail Sales dropped for the second month in a row. This is an indication of the challenging conditions affecting the Australian economy.
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