Good day forex traders and readers.
Welcome to the weekly edition of the AUD/USD forecast. I hope everyone is having a great weekend so far. Best with a gain of pips for the week 🙂
In the previous AUD/USD forecast we noted that the currency pair was bullish for the week. It did attempt to break the resistance of 0.9450 but failed.The immediate resistance was likely to be 0.9450 followed by an extended bullish target of 0.96. Should bearish pressure return, the immediate support was likely to be 0.9280. After which we might expect a possible drop to 0.9150 followed by 0.9050.
Looking at the AUD/USD weekly chart above we note that the currency pair was bearish for the week having failed to breach the resistance of 0.9450.
While the currency pair remains in the long term bullish channel, we must be careful of short term volatility.
Should bullish momentum pick up again, 0.9450 remains the immediate strong resistance to be conquered. Only after clearing it can we consider 0.96.
As for any bearish pressure that may continue, 0.9280 stands ready as a possible support. 0.9150 and 0.9050 remain as extended supports for us to keep in mind for our trading plans.
The economic data from Australia this week is somewhat flat. With the absence of any strong influence for the Aussie dollar, the currency pair is probably influenced by the Ukraine crisis and also the encouraging US economic data. The markets do not like a sovereign crisis and hence do be on the lookout of any risk aversion if the crisis escalates.
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