Good day forex traders and readers.
Welcome to another weekend edition of the AUD/USD forecast. I hope you are making big profits from this currency pair.
In the previous AUD/USD forecast we noted that the currency pair dipped further for the week after failing to secure a recovery by mid week. If the bearish momentum continued the AUD/USD might target 0.86 followed by 0.85. Should a bullish correction return to halt the descend, it would probably need to breach the support region of 0.88.
Looking at the AUD/USD daily chart above we note that the currency pair gained a bullish push and tested the resistance of 0.88. To the dear readers that decided to trade this long as per our previous AUD/USD forecast, congratulations on a good harvest!
We note that the AUD/USD is ranging due to volatility and the immediate resistance is 0.88. If the resistance fails, we may be looking at 0.8880 next.
Do be careful and keep a look out for any return of the bearish momentum. Should it return, we may see a test of 0.8680.
The AUD/USD recovered slightly from the previous week’s low. Having said so we still must be alert for any bearish development. It was reported that officials from the Reserve Bank of Australia mentioned that a AUD/USD of 0.85 would be desired and hence we should consider this as part of our trading plan.
It was also reported that the Commonwealth Bank of Australia has cut the AUD/USD estimate to a 0.84 by the end of the year. It is also considering that the currency pair may dip below 0.8 momentarily in the year, especially if the economic conditions deteriorate.
The Reserve Bank of Australia is due to release their interest rate decision early week and hence we need to be cautious. Any unexpected development may trigger excessive volatility.
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