Good day forex traders.
It’s the weekend and I hope you are spending quality time with your loved ones after a week of excellent forex trading!
In the previous AUD/USD forecast we noted on the positivity of sentiments as the US Non-Farm payroll impresses. Should nothing fundamental changes, we might see 1.0440 as a bullish target for the currency pair.
Looking at the AUD/USD daily chart above we do noted that the 1.0440 target was hit. I love it when my charts work ! 🙂
The currency pair is now at a region where consolidation may happen and hence we should monitor this with the upper limit being right about 1.0480 and respectively lower limit being about 1.0380. Any breech of either the mentioned support or resistance may suggest further momentum.
With the recent comments and stance from the Reserve Bank of Australia, it is believe that the number of traders believing in an interest rate cut in the near future has more or less dropped to lower numbers. This probably resulted in a higher demand for the Aussie dollar as the interest rate difference brings an incentive for the carry trade too.
While not directly related, the situation in Cyprus must be closely monitored. If any adverse event happens, global sentiments may become depressed.