Good day forex traders and forex koalas!
Welcome to the weekend and it is a wet one for me. I made a small bag of pips this week and I hope you did too 🙂
Looking at the previous AUD/USD forecast we noted a test of the resistance of 1.0480. As the currency pair eases off, 1.0480 remains a resistance level should the bill returns. We note that the AUD/USD generally remains rather resilient.
Looking at the AUD/USD chart above we noted that the currency pair tested the 1.0480 level again. I love it when my lines work!
Upon closer observation of the chart, we note that a head and shoulders pattern may be forming and if so, it may suggest continued bearish momentum. Immediate support may be 1.0350 while extended bearish target may be 1.0280.
If bullish momentum returns, we will look at 1.0480 again as an immediate target.
Looking at the current economic situation, we continued to see possible sentiment dampers from the Euro Zone. Cyprus remains on the edge and we must not be over confident in our measures to protect our trading capital.
The US Non-Farm Payroll came out as an disappointment as the number of jobs added to the labour market was much lower than expected. Demand for the US dollar probably dropped.
Over the week, the statistics for the Australian economy was generally good. This further builds upon the resilience I always said of the Australian economy and by extension the Aussie dollar.
Trade safely and continue to monitor the sentiments. Subscribe to our free mailing list on the right bar so that you will be notified when new articles are posted.