AUD/USD Weekly Price Forecast – Australian dollar finds support

The Australian dollar initially fell during the week, breaking down rather significantly but finding support at the 0.7350 level. That’s an area that has been important more than once, and the fact that we turned around to form a massive hammer suggests that we are probably going to see a bit of a bounce here. However, I would be a bit cautious about going long until we break above the 0.75 level, as it certainly will have a certain amount of psychological resistance based upon the large, round, psychologically significant number.

If the markets do make the breakout, we will probably go looking towards the 0.7650 level as it would be the top of the overall consolidation. If we can break above there, then the Australian dollar can really start to move to the upside. Otherwise, if we break down below the bottom of the hammer for the week, that would be a very negative sign, and it would certainly open the door to the 0.70 level over the longer-term. Remember that the Australian dollar is highly sensitive to what’s going on in China, which of course is very sensitive to what’s going on between the United States and China when it comes to trade tariffs and the like.

I don’t think this is going to be an easy trade to take, but of things can calm down as far as tariffs are concerned between American and China, we could see the Australian dollar being one of the better performers.

AUD/USD Video 25.06.18

This article was originally posted on FX Empire

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