Good day forex traders and koalas!
It is time to take a look at the AUD/USD. It seems to be turning out to be a wet weekend for me and i hope your’s is fine.
In the previous forex forecast review we noted that the currency pair displayed bearish possibility and the SMA 200 was acting as an immediate support. China’s slow down was reported to be affecting Australia due to it being Australia’s largest trading partner.
The SMA 200 together with the 1.0330 line continued to act as an immediate support. I LOVE IT WHEN MY CHARTS WORK!
SMA 20 = bearish
SMA 50 = bearish
With both SMAs bearish, it seems that the possibility of a further dive is high. The AUD/USD did make a lower low this week. Monitor the SMA 200 and the 1.0330 line closely. Should they fail, we may see an extended bearish target of 1.0140.
While it was reported that the Australia’s dollar strengthened against the US dollar for the second quarter, i personally believed caution must be exercised. The month of March was a bearish drop and the weekly chart seems to be rather bearish. China in it’s bid to cool it’s economy down in fear of speculative bubbles will probably continue to exert strains on the Australian economy in the medium to long term.
In the meanwhile the S&P/AXS 200 had risen above the 4300 level and this suggests positive sentiments for now.
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