Good day forex traders and readers.
Welcome to the weekends and I hope you are in a better state than me. Am sick now but nothing stops my commitment to you my forex readers 🙂
In the previous AUD/USD forecast we noted that the currency pair continued on its bearish slide and was resting right below the 0.9280 support. It was crucial to see if the AUD/USD would break away from the support. If so, we might expect a bearish target of 0.9150 and 0.9050. Should the bullish momentum returned, we might expect a bullish target of 0.9450 followed by 0.96.
Looking at the AUD/USD weekly chart above we note that the currency pair ended up pretty much the same level as the previous week. The candle pattern is a doji and it indicates uncertainty.
It remains critical to observe if the AUD/USD will break away from the influential support and resistance region of 0.9280.
Bearish targets remain at 0.9150 and 0.9050.
Distinctive bullish momentum may see a bullish target of 0.9450 followed by 0.96.
The Ukraine crisis remains a drag on sentiments due to the possibility of further escalation.
While the Australian economic data for the week was overall positive, there was not much definite movement. This could be due to the anticipation of the US Non-Farm Payroll.
It was reported that Australia is considering cuts to welfare schemes and the sales of assets. This is to reduce the debt levels of Australia. This is an interesting situation as it produces two school of thoughts. As Australia is currently one of the financially stronger developed nations, a reduction in debt will further enhance the financial situation of the country and thus appeal to the sentiments of investors. On the other hand, some investors are wary of this action as it may suggest underlying weakness.
Next week brings a number of economic releases for Australia including the cash rate decision event and also retail sales. Do remember your proper money management.