AUD/USD Price Forecast – Aussie continues to slump

The Australian dollar initially tried to rally a bit during the trading session on Monday but gave back the gains to break below the 0.7150 level. The Australian dollar of course is very sensitive to the Chinese economy and of course the trade war. The market looks likely to roll over due to various concerns, and of course the economic numbers out of China becoming a bit softer. I think at this point we are finally seeing a pullback towards the support again underneath that I think will stabilize the overall uptrend of this pair.

AUD/USD Video 22.01.19

The 0.70 level underneath is the beginning of significant support down to the 0.68 handle, an area that has been important on longer-term charts, and therefore I think will be important in the meantime. I think a pullback to this area that shows a bit of support is an excellent opportunity to start buying again based upon the weekly, if not monthly charts. If we were to break down below the recent flash crash though, that would be an extraordinarily negative sign, sending this market down to the 0.65 handle. That being said, I do believe that we are trying to form a bit of a base in this market, so my default thought is that a bounce should occur, especially if we get some type of agreement between the Americans and the Chinese, as I would expect explosive move to the upside.