Good day forex traders.
Welcome to another forex forecast of the AUD/USD.
In the previous review we noted that the AUD/USD had dipped below the 1.0750 region and failed to break it again. This suggested bearish possibility. An extended target might be 1.0340.
Technical Analysis
Looking at the AUD/USD chart above, the currency pair remained under 1.0750. As mentioned, an possibility of a bullish momentum will require a whole green candle close above the 1.0750 region first.. Compared to the EUR/USD, the AUD/USD was less violate for the week and hence provided a good diversification for traders who trades in multiple currency pairs. If bearish momentum overwhelms, the extended target of 1.0340 remains.
Fundamental Analysis
As i always mentioned, the Australian economy is fairly resilient and this is evident in the currency movement as seen above. From an equities perspective, the S&P / ASX 200 did suffer a bearish dip but as of the last day of the trading week, it is on a bullish climb to test 4200.
As the global financial markets remain affected by the Greek budget deficit crisis, we should be closely monitoring the developments. The German chancellor was reported as saying that an agreement on a Greek deal is within days. This probably helped boost sentiments and if it becomes an reality, we may see more bullish action due to risk seeking activities.
Trade Safely.
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