Good day forex traders and readers.
Welcome to the weekly forecast of the AUD/USD. With the crisis in Ukraine underway, let us all hope that peace will prevail always!
In the previous AUD/USD forecast we noted that the currency pair was bearish. However should the support hold, any recovery attempt by the bulls would need to see the resistance of 0.9 breached. The extended bullish target was likely to be 0.9140. In the meanwhile economists expect the Reserve Bank of Australia to hold interest rates when the interest rate decision session convened.
Looking at the AUD/USD daily chart above we note that the currency pair tested the extended bullish target of 0.9140 as expected for a bullish momentum. You folks know that I definitely love it when my charts work because that means you my dear readers will be making a profit!
A continuation of the bullish momentum will be a successful breach of the 0.9140 resistance region. An extended bullish target region will be 0.93.
The 0.9140 resistance region is rather strong and should it hold, we may see a test of the support 0.9 followed by 0.8880.
The main event for the week was the Reserve Bank of Australia interest rate decision. The RBA decided to maintain the interest rate for now. The RBA governor mentioned that he did not see a need for now to further loosen the monetary policy. Investors probably see this as a positive development and hence the increased demand for the Aussie dollar. I think it is of importance that the governor mentioned that his view remains of the fact that the AUD/USD should be below 0.9.
The Australian unemployment rate is getting much focus these days as the economy struggles. The latest data is due to be released mid week and hence I urge everyone to be cautious.
To get the most out of TheGeekKnows, join our free email mailing list. Get forex updates, forecasts and warnings! Join on the right side bar.