AUD/USD Weekly Price Forecast – Australian dollar rallies for the week

The Australian dollar has exploded to the upside during the week, reaching towards the 0.73 level. The 0.7350 level above has been supported, and it is more than likely going to continue to be resistance. If we do break above there, I think there’s far too much in the way of order flow above the 0.7350 level to allow the market to continue to go higher, but if we did do that, the market will more than likely go to the 0.75 level which will also feature a lot of order flow. I suspect that if you wait for some type of daily exhaustive candle, and you will probably get the opportunity to start selling again. I think that market participants recognize that the Australian dollar is highly leveraged to the Chinese economy, and quite frankly that economy is in flux as there is the tariff war that we have to worry about. When you look at the Chinese stock markets, it’s obvious that people feel better about putting money into the US stock market as opposed to Shanghai. That weighs upon the Australian dollar, as it is representative of the country that supplies China with its “stuff” to make more “stuff.”

I suspect that the longer-term trader will be better served paying attention to the 0.7350 level on shorter time frames to get a good entry to the downside. If we break above there, then we have an even tougher fight for the bulls.

AUD/USD Video 24.09.18

This article was originally posted on FX Empire

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