Good day forex traders and readers.
It is the end of another week and we are fast approaching the end of the year. I hope forex trading has been successful for you so far 🙂
In the previous AUD/USD forecast we noted areas of potential bearish supports and bullish resistance. The currency pair continued to show a bearish bias. Market speculations of an impending rate cut were reported while China’s positive developments played a part in cushioning the dips.
Looking at the AUD/USD daily chart above we note that the currency pair ended the trading week near the week’s opening. It is only slightly bearish for the week although it did dip downwards before recovering. The support region identified last week did turn out to be effective. I love it when my chart works 🙂
Observing the chart, we can see that the areas of support and resistance remain similar. It is interesting to note of the strong bullish support that limited the bearish drive. This suggests that the bulls may overcome the bears soon if nothing changes. We need to monitor closely.
The fundamental situation remains interesting as two opposing forces struggle to maintain dominance.
The US dollar continues to enjoy demand and the new US Federal Reserve chairman reaffirms her intention to support the US economy. Markets are now probably speculating a delayed taper of the quantitative easing program.
Supporting the Aussie is the recent positivity towards China. The just concluded meeting of the government officials paved the way for economic and social reforms, further positioning China for a role of the new global economic powerhouse. Long time readers will know that I always mentioned that a positive outlook for China will usually provide an uplift to the AUD/USD due to it being Australia’s largest trading partner.
Let us continue to monitor the sentiments in the week ahead.