The AUDUSD technical pattern remains bearish. Although we got a weekly close above the big round number 0.7500, AUDUSD is still correcting the cycle from December low. We can still see a retest of the 0.7600 resistance level before the downside can resume. A break and a close below 0.7500 can open up the door for a retest of the 0.7450 support level. The stochastic indicator is still not yet in oversold conditions so we might see early in the week more strength.
The only big risk event for the AUDUSD exchange rate is the Australian Unemployment rate. The unemployment rate unexpectedly eased to 5.8% sending mixed signals about the Aussie labor market. The fundamentals don’t yet support the AUDUSD exchange rate at current level, which is the reason why we remain cautiously bearish.
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AUDUSD Weekly Forex Forecast – 13th to 17th Mar 2017
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