Good day forex traders and readers.
Welcome to the weekend and I wish you a great time with your families! If you had made money from forex trading, well done 🙂 Even if it is just a pip, give yourself a pat on your back as this means you do not belong to the 95% of retail forex traders that lose money trading forex.
In the previous AUD/USD forecast we noted that the currency pair was bearish as it dipped below the bottom bollinger band. Should bullish momentum return, we might see 0.9130. Many investors were speculating an interest rate cut and the budget deficit of Australia was of concern.
Looking at the AUD/USD daily chart above we note that the currency pair unexpectedly turned bullish and went beyond the resistance of 0.9130. This is the reason why proper money management in forex is important.
The momentum is strong as it breached the middle bollinger band without much resistance. Should this bullish correction continue, a bullish target of 0.9280 / 0.9300 may be considered.
Any bearish return may see the middle bollinger band acting as an immediate support at 0.9100, followed by 0.8900.
The Rsserve Bank of Australia cut the cash rate as expected and it turned out that the market reacted minimally having expected and priced in the cut.
As the week passed, economic data from the euro zone gave the market confidence that global growth is picking. The US dollar started to weaken versus most currencies. China also reported positive economic data and being Australia’s largest trading partner, this development is positive for the Australian economy.
In the upcoming week, we need to continue to monitor the global sentiments and in particularly developments from China.