Good day forex traders and readers.
It is the weekend and I hope everyone is having a good time. It had been a busy week for me and I am glad that I can catch up with some rest.
In the previous AUD/USD forecast we noted that the currency pair had been on a steady bearish down trend since September last year. The technical chart suggested a significant support at the region of 0.7620. Any bullish recovery might target 0.7780.
Looking at the AUD/USD weekly chart above we note that the currency pair was bullish for the week. It did test the 0.7620 region as expected.
It is interesting that the AUD/USD remains supported by 0.7620. We may be entering a consolidation period. Any bearish momentum will definitely need to overcome the support. Bullish target remains as 0.7780.
The bottom bollinger band is turning bullish and hence we need to monitor closely.
With regards to the recent Rsserve Bank of Australia announcement, a number of investors were worried about a rate cut. Therefore when rates were held steady, it was an unexpected scenario.
Having said so, the depressed commodities prices will likely continue acting like a weight.
Next week brings Australian employment information. As the job market is a crucial component of the economy, it may offer some insights. Do ensure proper money management.