Good day forex traders.
Welcome to the weekly AUD/USD forecast review. This week had been a really simple week. The trend was obvious and many readers made good amount of pips!
In the previous review, we noted that both SMAs were bearish. The Euro Zone woes and China’s slowing down were affecting the Australian economy.
Long time readers may notice that the AUD/USD chart is surprisingly bare today. No SMAs?
Well today i would like to make it very clear that while no one can confirm that the bearish trend will continue next week, THE MAIN SENTIMENT IS BEARISH!
Throughout the week i had readers telling me that they are stuck in a long after trying to catch a bottom. Dear readers, do refer to the chart above, the AUD/USD is bearish for many days and the descent is steep. This suggests a strong momentum. While corrections definitely do happen, no one can predict when it will happen and hence a prudent trader will probably wait for signs of confirmation first before opening a speculative long. Money is hard to come by. Please do not waste it unnecessarily!
Alright. Much apologies. I really wanted to warn everyone about the dangers of excessive risky trading. I had 3 margin calls before and i know that is a terrible feeling. 🙁 Back to our review ok?
Now should the bearish momentum continue, 0.96 will be our next bearish extended target.
Moody’s cut ratings of Italian banks and Spanish banks this week. Fitch cut the rating of Greece on concerns of continued Euro Zone membership.
Equities were mostly red worldwide.
Risk aversion is strong and capital is flowing out of high yielding risky assets into relatively safer assets such as the US Dollar.
In addition, the rate cut by the Reserve Bank of Australia previously probably dampened holdings by carry trade investors.
Continued to monitor the developments in the Euro Zone.
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