Good day forex traders.
It is long since we took a look at the AUD/USD. I hope everyone is trading well.
In the previous AUD/USD forecast we noted that the currency pair was bullish again for the week. It hit the bullish target of 0.725 and stretched further.
From a technical poont of view, the AUD/USD was facing resistance from the middle bollinger band. I used the bollinger band for years and feel that it is a good indication of possible ranges.
It was crucial to observe if the middle bollinger band would be breached. If so, we might expect further bullish momentum towards 0.745.
Looking at the AUD/USD weekly chart above we note that the currency pair was bullish for the week. It had since breached the middle bollinger band.
*Dear readers. We are testing a new support model for our site. Please support us by completing a mini survey if it appears below. All 6 questions should be answered. Thanks.*
Should the bullish momentum continue, we will likely see an attempt to test the 0.75 resistance region. The upper bollinger band is also currently in the same region.
The Reserve Bank of Australia held the interest rate at 2% and spoke in an optimistic manner regarding the Australian economy. It was mentioned that “the prospects for an improvement in economic conditions had firmed a little over recent months”. This brought about positive sentiments and contributed to the demand for the Aussie dollar.
Further setting the optimism tone was the Australian GDP which came in at 0.9% for the third quarter. It is higher than the estimated 0.7%.
Next week brings the Australian unemployment report. The job market is a strong indicator of an economy and hence many analysts will be keeping tabs on it. It is expected to post a 0.1% increase in unemployment, bringing it to 6%.
Do practice proper money management.