Good day readers.
Hope you are having a great holiday season. 🙂
In the previous AUD/USD forecast we noted that the currency pair was a doji for the week. As expected, the middle bollinger band functioned as a resistance for the price action.
The doji nature of the AUD/USD suggested that the traders were undecided with regards to the currency pair. This was expected as the US Federal Reserve interest rate hike was due.
Looking at the AUD/USD weekly chart above we note that the currency pair was bullish for the week. It is currently testing the middle bollinger band again.
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We are pleased with the performance of our bollinger bands. It continues to provide indications of possible price action.
Should the AUD/USD clear the middle bollinger band, the bullish momentum may target 0.74. Any further push will need to see the upper bollinger band breached first
A return of bearish pressure may see support at 0.7120, followed by the lower bollinger band.
Regardless, it is important to note that the AUD/USD has been range bounded for sometime now.
In view of the year end season, the economic data schedule is light. The recent US interest rate hike saw the markets reacting as expected. As far as the currency pair is concerned, we may see a possible shift towards the US dollar. This is especially if the US interest rate continues to be increased in 2016 without the Australian counterpart following.
Although next week is likely to be slow, economic releases such as the US unemployment claims are still due to be released. Low volume market condition is likely to persist. Do ensure that you practice proper money management.