AUDUSD Forecast and Technical Overview: No macro reasons to run so far
AUDUSD ended week 0.71400, 80 pips’ range and at the lower end of the previous weekly span.
Trade talk optimism and weak U.S data helped the AUDUSD to recover some ground in the final trading day of the week.
The Aussie had no macro reasons to run, as housing-related data disappointed big, with Home Loans falling 6.1% in December, and Investment Lending for Homes also down in the same month by 4.4%. The latest decision of the RBA to change its stance toward rate hikes to neutral, meaning equal odds for rate hikes than rate cuts, was a result of the tumbling property market, therefore data related to it will hit the AUD harder. Australia reported the NAB Business Confidence and Business Conditions indexes, both beating expectations but still sluggish. CPI Expectation as per the Melbourne Institute’s estimates, rose to 3.7% in February vs. 3.5% in January.
China released mixed figures these last few days, with the trade balance improving but inflation down.
The upcoming week RBA Meeting’s Minutes will be released on Tuesday and the Westpac Leading Index on Wednesday. The most relevant event, however, will be January employment data to be released on Thursday.
The pair is testing SMA100 and SMA200 resistance on the H4 chart. On the daily chart, the pair is still trading below MA20. The pair poised to test the 0.7000 level in the near term and the bearish bias will continue as long as the price stays below 0.72700.
Harmonic overview of the smaller charts:
A Bearish Crab pattern would be completed at D. Area of the entry starts at 0.71680.
Bearish Bat Pattern which would be started to work at 0.72050.
Entry notification will be sent to members if one of those patterns become validated.
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DISCLAIMER: This is a technical analysis study, not advice or recommendation to invest money
AUDUSD: Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. Chartreaderpro does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility