- A shift back towards a “risk on” theme this week, with stock indices rebounding after a lack of escalation after negative comments from the end of last week US government officials regarding China and potential tariffs.
- In the Forex space, this has seen the “risk” currencies rallying, with the Australian, New Zealand and Canadian Dollars all higher against the US Dollar after early losses at the start of May.
- Here we look at the positive bias for the Australian Dollar versus the US Dollar, the AUDUSD forecast.
AUDUSD day trade outlook: Aiming higher
A Tuesday advance just above .6472 resistance to build on Monday’s rebound from .6368 and whilst holding at .6368 we see a resumption of bull forces from the latter April rally, through key .6445 resistance, to keep risks higher into Wednesday.
- We see an upside bias through .6476 for .6527/30; a break above aims maybe for .6570 and .6581.
- But below .6414 targets .6368, maybe even towards .6335/33.
AUDUSD intermediate-term outlook
The early April push surge above .6214 set an intermediate-term bull trend.
- Upside threat: We see an intermediate-term bull trend for .6685 maybe .7032.
- What changes this? Below .6250 switches the bull trend straight to an intermediate-term bear trend.
4 Hour AUDUSD Chart
