AUD/USD Forecast: Bearish Outlook Ahead!

The price of Australian dollar has formed a long black candle at the end of last trading week. In this way, the price of this asset ended testing the broken horizontal level of 0.6621 as well as 50% Fibonacci retracement level expanded along the latest ascending move. The bears are still pushing forward. Therefore, the price of Australian dollar might potentially drop to the level of 0.6400 during the upcoming trading week. The market buyers might get interested in the asset only during the breakout at the level of 0.6690, thus raising the price. So, let’s wait and see what is going to be the next price movement of Australian dollar.

Last Friday 10-year yield of the German government bonds started to drop. It is currently approaching the key supporting zone formed between levels 2.30 and 2.34 (%). The potential for a rebound remains high. Hence, the market buyers might start buying the bonds again next week. If the supporting zone gets broken, the price of this asset might drop. Let us remind you that when the yield of the government bonds goes up, their price always goes down, and vice versa.

The price of copper tried to break the supporting zone formed between levels 4.275 and 4.325, but to no avail. Last Friday the price of this asset tested the supporting zone again. However, the recently formed bullish engulfing signifies the low selling potential of the copper. Yet the price of copper might slightly rise at the beginning of the upcoming trading week if market sentiment becomes bullish. So, let’s wait and see whether this scenario is going to work out.

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