Best Forex Trading Signals
A combination of comments from Reserve Bank ofAustralia governor Glenn Stevens and U.S. Fed Chairman Ben Bernanke helped drive the AUD USD higher on Friday, putting it in a position to break out over the last swing top at 1.0601. A trade through this level will turn the main trend to up on the daily chart, and could signal the start of a rally to 1.0850.
Fundamentally, Stevens hinted that the RBA will not cut interest rates and Bernanke left interest rates unchanged at extremely low levels. Both comments are driving up the Aussie while weakening the Greenback. Technically, the market is likely to breakout over 1.0601, but can run into early resistance at 1.0620 and 1.0639. Once this area is cleared, this currency pair has a clear shot at reaching 1.0850 over the near-term.
The greenback opens weaker across the board and stocks rallied late on Friday after US Federal Reserve Chairman Ben Bernanke indicated the economy does not require any further stimulus at this stage. Mr Bernanke stuck to his recent view that the recovery is likely to gather pace in the second half of this year. The speech on Friday to central bankers and economists did not go into detail as to what stimulus measures the Fed has up its sleeve, should they be required, however Mr Bernanke mentioned that a second day has been added to next months Federal Open Market Committee meeting to “allow further discussion” of the economy. Despite data on Friday revealing the US economy is growing at a sluggish 1 per cent annual pace, markets took on board risk late in the session which saw the Euro rally from 1.4340 to a 24-hour high of 1.4500. The dollar also weakened against the Japanese Yen opening at 76.70.
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