AUD/USD Daily Forecast 21st March 2016
AUD/USD Signal Update
No signals were given last Thursday.
Today’s AUD/USD Signals
No specific signals are given today.
AUD/USD Analysis
We remain in a situation where the closest key support and resistance levels are so far away from the current price that there is no point in giving any precise signals today. Key support is at 0.7398 and key resistance is at 0.7860. This pair still looks bullish even though there has been some recovery by the U.S. Dollar since last Friday. The Australian Dollar is the strongest of all the other global currencies, so being long of this pair is a good opportunity and very much in line with the fundamental environment as well as the long term trend, not to mention relative yields as the Reserve Bank of Australia pays 2.00% interest while the Federal Reserve still pays less than 0.50%. So just about everything is working in favour of a long position here.
Although we are far from any key supportive levels, it is possible to take some shorter-term timeframe trades just by looking for appropriate price pullbacks and entering long once they turn with some strength. However I suspect this morning’s push up is unlikely to go any further and we will probably see another test of the lows made earlier at around 0.7569.
However if the price does start to rise strongly again and break up past last week’s high, there is little historical resistance to stop the price reaching 0.7860.
There is nothing due today concerning the USD. Regarding the AUD, the Governor of the RBA will be speaking at 5:30am London time.