AUDUSD Has Set Long-Term Top but looks Bullish Short-term
AUDUSD Long-Term Technical Forecast
Now this is what a top should look like. Divergence with RSI at the top confirms that the A-B-C advance from the 2001 low is complete. A large portion of the rally from 2001 should be retraced. Of course, there will be big rallies along the way and we’ll look to identify the short term patterns in the Daily Technicals.
AUDUSD Fundamental Outlook/Interest Rate Forecast
The highly yield-sensitive Australian Dollar has fallen significantly through recent months of trading, as interest rate traders now forecast noticeably lower Australian interest rates through the year ahead. Current Credit Suisse interest rate quotes show expectations of 83 basis points in RBA cuts, while the US Federal Reserve is predicted to raise rates by 62 basis points through the same period. Such rate changes would leave the Australian Dollar-US Dollar yield differential nearly 1.50 percentage points lower, and the highly yield-sensitive AUDUSD pair may suffer as a result.
AUDUSD Forex Sentiment Outlook