Good day forex traders and readers.
Welcome to another edition of the popular AUD/USD forecast. This currency pair has been trending of late and many readers are earning pips! Hope you are one of them too. 🙂
In the previous AUD/USD forecast we noted that bearish pressure struck the currency pair and brought it down again. It resulted in another correction. I noted that the currency pair did not achieve a higher high suggesting the possibility of an underlying bearish pressure.
Looking at the AUD/USD weekly chart above we note that the currency pair did continue with the bearish momentum. I am pleased when the forecast is right on target. Time after time it just shows that the Forex Koala ‘s approach on technical + fundamental forex trading is profitable ! 🙂
From a technical point of view on the weekly chart, there may be a sloping support and hence be careful of any possible consolidation. Should the bearish momentum continue, I am looking at 0.82 and 0.81. Any correction is likely to push us back up to 0.84 immediate resistance.
From a fundamental point of view, the Aussie dollar continue to face challenges from both it’s Reserve Bank of Australia and the economy in general.
The RBA is of the view that a weaker AUD is beneficial to the Australian economy and hence the market is cautious on any rising prospects. Furthermore with the price of commodities generally down, Australia whose more than half its exports is made of commodities is facing an impact. China’s slow down is also applying pressure as Australia’s largest trading partner.
On the other hand as mentioned in the EUR/USD forecast, the U.S. Dollar is getting an uplift from the improving economic conditions of the US. US Non-Farm Payroll was better than expected and comments by the US Federal Reserve indicates of the possibility of rising interest rates.
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