Good day forex traders and readers.
It has been a tiring week for me and I hope yours was ok. One of my family member has fallen ill and I pray that all will be well soon.
In the previous AUD/USD forecast we noted that the currency pair was bullish for the week although the momentum was not as strong as the week before. Should the bullish momentum continued, we might see a test of 0.9450 followed by 0.96. On the other hand if bearish momentum returned, we might expect a test of 0.9050. The Australian employment data would be a crucial factor.
Looking at the AUD/USD weekly chart above we note that the currency pair was bullish for the week. It did attempt to break the resistance of 0.9450 but failed.
The immediate resistance is likely to be 0.9450 followed by an extended bullish target of 0.96.
Should bearish pressure return, the immediate support is likely to be 0.9280. After which we may expect a possible drop to 0.9150 followed by 0.9050.
The AUD/USD probably gained strong positive sentiment as the Australian employment data showed a better than expected performance. More jobs were created and unemployment fell to 5.8%. This suggests strongly that the Australian economy is recovering. With the general belief that the Reserve Bank of Australia is likely to not cut rates for the foreseeable future, the attraction of the Aussie dollar is rising.
As a further indication to our view above, reports are showing the traders are now net long on the Australian dollar.
Continue to monitor economic releases and also do note that next week features a bank holiday.
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