Commodity currencies like CAD and Aussie are the strongest counterparts against the greenback, a rally inspired by strong commodity prices. Commodity based currencies are expected to outperform in the coming week as well and the 0.7646 -07610 area of support zone not only that it can stop the Friday’s sell-off, but it can be the starting point for the next leg higher that can send AUD/USD to challenge the 0.7833 which is also the 2016 highest price. The AUD/USD technical pattern indicates multiple strong support levels that come below the current price and form a confluence zone from where AUD/USD can bounce. The 200-day moving average comes at 0.7583 and a break below exposes the rising trendline that connects the low from the May low. We should expect earlier in the week the 0.7600 round number to hold the downside and the bullish momentum to start building up and at least to retest 0.7720 intraday resistance level. Only a break below the rising trendline indicates that the cycle from 0.7145 May low is over, which exposes a larger correction. Again the Australian economic calendar doesn’t offer any significant event risk that can disrupt the market volatility and we should expect to have a technical driven market.

AUDUSD Weekly Forex Forecast - 22nd Aug to 26th Aug 2016 - BEARISH