Good day forex traders and koalas and anything in between!
Welcome to another forecast of the AUD/USD. Of course this is the home ground of The Forex Koala. Boy it is looking strong 🙂 Koala Style !
In the previous AUDUSD forecast we noted that the currency pair had bullish inclinations. The SMA 200 was an immediate resistance and a breach of which would open up extended target of 1.0330. Developments of the European Union Summit brought relief to the markets spurring risk taking activities.
Looking at the AUD/USD chart above you folks know what is coming. Prepare your ears cause .. I LOVE IT WHEN MY ANALYSIS WORKS! 1.0330 was tested indeed!
SMA 20 = Bullish
SMA 50 = Turning Bullish
Depending strongly on the current fundamental situation, we may see a technical consolidation around the region of 1.0330 +/- as circled to the left of the chart. The SMA 200 will retain some attraction to the price action and the next extended bullish target if any would be 1.0430. Bearish come back must see 1.0200 crushed first.
The US Non-Farm Payroll came as an disappointment. Jobs added was lower than expected and the unemployment rate remained at 8.2%.
Despite such i would like to comment that the current situation greatly highlights the resilience of the commodity currency Australian Dollars. The AUD/USD held up pretty good while the EUR/USD basically took a dive to the depths. The Australian economy remains tight and optimistic. The S&P / AXS 200 is now 4150+ and is on a bullish trend for now.
Caution though, the Australian economy is not immune as it is highly dependent on global trade. It is just resilient and serves as a good diversification. The high interest rate completed to the other developed currencies is a plus.
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