Good day forex traders and readers.
Welcome to the weekly forecast of the koala currency pair the AUD/USD. Did you make money trading it this week?
In the previous AUD/USD forecast we noted that the currency pair remained in the long term bullish channel. If bullish momentum returned, 0.9450 remained the immediate strong resistance to be conquered. Only after clearing it could we consider 0.96.
As for any bearish pressure that might continue, 0.9280 stood ready as a possible support. 0.9150 and 0.9050 remained as extended supports for us to keep in mind for our trading plans.
Looking at the AUD/USD weekly chart above we note that the currency pair continued on its bearish slide and is now resting right below the 0.9280 support as mentioned.
It is crucial to see if the AUD/USD manages to break clear away from the support. If so, we may expect a bearish target of 0.9150 and 0.9050.
Again if bullish momentum returns, we may expect a bullish target of 0.9450 followed by 0.96.
A weaker than expected Australian inflation data was released and it probably sent sentiments down for the week. Investors are worried of a stall for the Aussie economy and along with it the possibility of a low interest rate environment.
The Ukraine crisis remains a significant damper as the stand off continues with no end in sight.
Next week brings us more Australian economic data. The Producer Price Index towards the end of the week will give us more insights into inflation and hence do be careful of any unexpected developments.
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