AUD/USD Price Forecast – Aussie falls early on Wednesday

The Australian dollar has pulled back significantly during the trading session on Wednesday, reaching down towards the 0.73 level before showing signs of support. We could bounce from here, and although I am inclined to think that, I would not be comfortable until we broke above the 0.7315 level. Once we do, then I think we go back to the 0.7350 level. That’s an area that continues to offer resistance, but eventually will probably be overcome if we see a continued “risk on” sentiment in stock markets and of course greenback weakness overall like we have lately.

I believe that the 0.72 level underneath is essentially the “floor” of the market, so if we were to break down below there it would be a very negative turn of events. However, I think there are far too many supportive levels between here and there for that to happen. The Aussie may get a bit of a reprieve later in the day, but it’s not going to be easy trading to say the least. When we do finally break to the upside though, it could lead to a much larger run. At that point, I’d be looking for the 0.75 level, which is much more significant on the longer-term charts. I think the market is going to try to do that, but it’s going to be very noisy in the meantime and you should keep that in mind. A break down below the 0.72 level almost certainly guarantees a move to the 0.70 level, however unlikely.

AUD/USD Video 30.08.18