The 200-day EMA and 0.7600 support level have limited the downside on AUD/USD however, we can spot a major divergence between the current price and the stochastic indicator which is indicating a reversal is about to happen. Since the Stochastic indicator is currently resetting we can expect another retest of the highs before another attempt to break below 0.7600 and eventually retest the big round number 0.7500. The Australian economic calendar looks quite heavy and Tuesday, traders need to keep an eye on the RBA interest rate decision. The new RBA Governor Lowe has warned that due to the Australia’s housing crisis the RBA may cut rates again. Even though the general consensus is for the interest rates to be kept unchanged the risk remains to the downside and a surprise rate cut should do the most damage to AUD/USD exchange rate. Even a no rate cut can be bearish for Aussie if RBA reiterates its strong stance in regard to the course of the interest rates. The NFP figures can also weigh negatively on AUD/USD if we have a strong job report which makes the bearish case even more compelling.

AUDUSD Weekly Forex Forecast - 3rd to 7th Oct 2016 - BULLISH