AUD/USD Price Forecast – Aussie falls into support on Wednesday

The Australian dollar initially fell during trading on Wednesday, reaching down to the 0.7375 handle before bouncing again. This is an area that has seen significant demand in the past, so quite frankly the bounce isn’t a huge surprise. With that being the case, it looks like we are trying to wipe out the losses from earlier, and therefore reach towards the 0.7450 area again. This market will continue to be highly sensitive to the trade war talks and rhetoric coming out of both the United States and China, as the Australian economy is essentially an intermediary for those markets. Think of it this way: when China needs copper they go to Australia to find it. If trade is slowing down between China and the United States, you can bet that the Australian economy will certainly feel it.

All things being equal though, the 0.7350 level is massive support underneath, based upon not only this chart, but longer-term weekly timeframe charts as well. With that in mind, I look at dips as potential buying opportunities, as I’m sure most of the other traders around the world do. A break down below the 0.73 level would be extraordinarily negative and could send this market looking towards the 0.720 level under that, but right now it doesn’t look that likely. When you look at the weekly chart, there are several hammers just below, and that tells me that longer-term money is starting to support this pair, but we need a catalyst to get more of a “risk on” move.

AUD/USD Video 09.08.18