Good day forex traders and readers.
Welcome to the weekend and an exciting week it had been. Now more importantly did you make money from forex? I sure hope you did. Time to cash out the pips for some barbecue party!
In the previous AUD/USD forecast we noted that the middle bollinger was in the path of the bearish momentum and hence it might offer a support of sorts. China’s property market was seen as overheating and investors were worried of intervention from the central bank.
Looking at the AUD/USD daily chart above we note that the currency pair continued on it’s bearish momentum and had in fact probably received further bearish pressure. While the 0.9520 region did put up a support, it fell and had since turned into a resistance for bullish corrections.
The bearish momentum slowed towards the end of the trading week but remains far from being extinguished. The current region of 0.9410 is an immediate support region. Failing which we will be looking at the lower bollinger band ( red ).
Any bullish return will need to overcome the support turned resistance region of 0.952.
The US Federal Reserve statement brought about mixed reaction of sorts. While they acknowledged some strengths of the economy, weakness was still observed. The general interpretation as believed by most economists is of a hawkish stance. This probably contributed to the pro US dollar sentiment.
It was reported that speculations of a December tapering of the quantitative easing by the US Federal Reserve have increased.
As currencies and commodities fell in value over the week, the better than expected Purchasing Managers’ Index in China probably capped the losses for the Aussie Dollar. It has reached an 18 months high suggesting that the global economic powerhouse has still much steam in it’s economic engine.