Good day forex traders and readers.
Welcome to another AUD/USD forecast. I hope it was a great week for your forex trading.
In the previous AUD/USD forecast we noted that any bearish momentum would need to test the immediate support of 0.9080. The immediate resistance would probably be 0.9320. From a fundamental point of view, the US Federal Reserve indicated that stimulus would continue until economic conditions were stable. China removed the lower limit on lending rates in an effort to spur economic growth. This may improve the outlook as lower lending rates means easier conditions for the businesses.
Looking at the AUD/USD daily chart above we note that the currency pair did test the resistance of 0.9320 as mentioned.
The bollinger bands setup for this currency pair remains very useful for our analysis as they were generally influential. Observation suggests resistance remains at 0.9320 and bearish momentum will face support at 0.9130.
As the market sentiments improve from the prospect of continued US Federal Reserve stimulus, we continue to see risk appetite improve. The AUD/USD is on a weekly bullish trend for the third week now.
The Australian equity index ASX 200 is positive for now.
I always mentioned that China is important to the Australian economy as it is the largest trading partner of Australia. The risk now is of the Chinese economy’s slowing growth. This will probably affect the sentiment towards the performance potential of Australia. On a positive note, the Chinese government is taking measures to maintain an acceptable growth rate for the Chinese economy.
We are expecting a number of important economic news including building approvals. Do manage your risk exposure.
Refer to the weekly pivot data for the AUD/USD below for some possible indications of support and resistance.
R3 0.9451 R2 0.9343 R1 0.9260 PP 0.9152 S1 0.9069 S2 0.8961 S3 0.8878