AUDUSD Weekly Forex Forecast – 23rd to 27th Jan 2017
The Australian dollar is among the best performing G10 currency posting three consecutive weekly bullish candles. We have close above the 0.7500 big psychological number, but more importantly, we’ve close above 0.7525 swing high. However, at the same time, we can spot a massive bearish divergence between the price and the stochastic indicator which is a clear warning that the uptrend can pause and see a retracement before the next accumulation phase and rally take place.
The first level of support comes in at 0.7450 followed by 0.7400 where we can expect a bounce. To the upside, the next major resistance levels only comes at 0.7740 daily resistance. There are growing speculations that the RBA will move towards a tightening monetary policy as soon as this year. Many of the Wall Street analysts predict that the RBA is on its way to raise rates this year which is part of the reason why we saw such a strong rally since the beginning of the year.
However, when this expectation will face reality we’re expecting to see a rebalancing of those long positions which can be the catalyst for the upcoming sell-off. The RBA is expected to keep rates on hold on Wednesday during the first monetary policy of the year and this can be the catalyst for a AUDUSD retracement.
AUDUSD Weekly Forex Forecast – 23rd to 27th Jan 2017 – Bearish
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