Good day forex traders.
Today i would like to provide a quick AUD/USD forecast review.
In the previous AUD/USD review, we noted that the inter-connectivity of the global financial system renders this currency pair vulnerable to sentimental trading. Often when risk aversion strikes, global risk appetite would be withdrawn in favor of assets deemed safe.
Looking at the AUD/USD chart above, we observe that the currency pair is being affected by the events in the Euro area. Having said so, note that the subsequent bullish climb is sharper than a corresponding time frame of the EUR/USD. This suggests that the markets continue to favor the Australian dollar as any increased risk appetite situation will usually result in a good demand for the AUD.
From a technical point of view, the previous region of support and resistance may be the first target of this bullish momentum if the market sentiments persist. A quick check on equity indexes worldwide are showing green now.
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