AUD/USD Price Forecast – Aussie dollar falls midweekThe Australian dollar has fallen during the day on Wednesday, breaking below the 0.7150 level. This is an area of support, but we aren’t far enough below it to convince me that we have smashed through it longer term.
The Australian dollar has broken down rather significantly during the trading session on Wednesday, slicing through the 0.7150 level. However, this is a market that has a lot of support in the neighborhood of 0.7150, so I think we could get a bit of a bounce from here. If we don’t, then the next target should be somewhere closer to the 0.71 handle, followed by the 0.70 level. At this point, I think it’s only a matter of time before we find value hunters, but quite frankly I don’t think that we are looking at some type of massive meltdown here, I think just the opposite, that some value hunters are starting to come into play. However, the Australian dollar is highly levered to the Chinese economy, so there is a certain amount of head wind when it comes to that situation and of course the increasing tension between the Americans and the Chinese. Overall, pay attention to gold because if it rallies that can help as well, but it’s obvious that we are paying more attention to Beijing in Washington these days.
Ultimately, I think that this will be a great buying opportunity for value hunters, but in the meantime it’s going to be very choppy and testy. I suspect that if you’re looking to short the US dollar, there are much better currencies to do it against, and therefore I have no interest in trying to buy this pair quite yet. I will be watching the longer-term charts though.