Home Technical Analysis AUDUSD Review: Changing Scenario of Forex

AUDUSD Review: Changing Scenario of Forex

by Ahsan Aslam Khan

Another roller coaster ride for AUD/USD happens as it is a changing scenario of Forex trading. Loose monetary policy is going to be another crucial factor to influence AUD/USD as it pullbacks under the support level of 0.7740. The value of this pair is currently challenging a new support level at 0.7725. It seems that the changing scenario of Forex market is affecting this pair now. If it reaches 0.7725 then this pair will further shift in the same direction. It may even reach 0.7710. The extended downtrend will lead towards a new support point at 0.7675. On contrary, if the value crosses the support level of 0.7740 then it may shift towards 0.7760. If it happens then the current support point will be transformed into the new resistance point. Frankly speaking, this is what called the changing scenario of Forex trading.

Loose Monetary Policy:

Loose monetary policy may act as the greatest hurdle to keep USD at lower side. At the same time, the deficit financing is also hindering the rise of USD. Additional Fiscal stimulus will put pressure on USD and lead it towards the annual lowest value.

Levels of USD:

USD seems to gain as compared to AUD in this situation. It has become a moment of relief for safe haven. The index of USD is finally getting material support. It has already crossed 90. It is now heading towards the level 90.30. If the current pace extends and the value crosses 90.30 as well then it may reach level 90.50. Frankly, if it happens then it will be a crucial factor for AUD/USD as it will convert the trend into bearish for this pair.

Employment Data and AUD/USD:

The optimistic employment data of Aussie will likely to benefit AUD. Last four months have witnessed the strength of Aussie. The positive employment data will support AUD. In this scenario, you can expect a rise in the value of AUD in the near term. the changing scenario of Forex trading makes it the most excited trading market.

 

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