The Australian dollar was the best performing major currency last week, rising about 0.8% against the greenback. The single currency found strength against all its rivals after reports showed an improving revised private capital expenditure.
With a fresh cross of 21 and 55 EMA on the 4hours time-frame to the upside, weekly bias remains on the upside. OSMA, RSI and SSRC (custom indicator) are also showing a sign of bullish continuation in the pair. More demand is expected and a clear break of 0.93286 resistance would see further rise to 0.9400 psychological zones.
However caution to the upside is advised in the early days of the week’s trading session as initial bias might be to the downside with the 1hour time-frame showing a sign of short sell off. This might be a minor retracement of the bullish trend. An important support to watch out for is 0.92751, a break of it might push price down further but I suggest we should be patient for a fundamental back up to initiate any sell position.
Important fundamentals to watch out for in the coming week are the AUD Interest Rate, Retail Sales, GDP q/q and USD Non-Farm Pay Roll.