The AUDUSD resumed the upside and broke above to new highs. Big picture we’re still trading in a very wide range. While we stay above 0.7500 and the broad-based dollar weakness persists, it’s wise to expect more upside but we’re facing a major hurdle at the 0.7740 which is the current year high. The stochastic indicator is already in overbought territory and turning lower which indicates that a retracement in underway and a possible retest of 0.7635 support level. A break and a daily close below this level will open the door for more downside towards 0.7555 followed by the big psychological number 0.7500. The Australian economic calendar will bring on Monday the Building Permits which can be the catalyst for some volatility. The biggest risk event for the Australian dollar is on Tuesday when we have the RBA rate decision. The RBA is expected to keep rates on hold but and change in the policy rhetoric can produce some volatility. While on Thursday, traders need to pay attention to the Trade Balance figures. Previous AUDUSD Weekly Forex Forecast

AUDUSD Weekly Forex Forecast - 3rd to 7th July 2017