The Australian dollar has fallen during trading on Wednesday, filling the gap to complete the move at the weekly open. At this point, I believe that there is support underneath though, especially near the 0.7250 level which has essentially been the pivot point for this pair as of late. We recently broken above a major downtrend line, so that of course is something to pay attention to as well. If we were to break down below the previous downtrend line, that would be very negative.
AUD/USD Video 06.12.18
If we do bounce before now and then, we could go to the 0.73, followed by the 0.75 level. I think at this point, breaking above that level then confirms a complete turnaround in the overall trend, and then the Australian dollar becomes a “buy-and-hold” currency. This almost has to be preceded by an agreement between the Americans and Chinese, which I don’t think it’s coming in the short term. Because of this, I expect a lot of choppiness but people are trying to place themselves ahead of a major move higher, as that could be explosive once it starts. The alternate scenario is that there is no agreement, and then we break down below the 0.70 level, which could send this market down to the 0.68 level. At this point, unfortunately for Australia most of what is moving this market is beyond its control.
This article was originally posted on FX Empire
More From FXEMPIRE:
- Silver Price Forecast – Silver markets hover on Wednesday
- EUR/USD Mid-Session Technical Analysis for December 5, 2018
- GBP/USD Price Forecast – British pound continues to make noise
- Crude Oil Price Forecast – crude oil markets rally on 10 Wednesday
- S&P 500 Price Forecast – important technical levels ahead
- AUD/USD Price Forecast – Australian dollar falls during the trading session on Wednesday