AUD/USD Price Forecast – Aussie find support after significant fallThe Australian dollar initially fell during trading on Tuesday but found a significant amount of support near the 0.7430 level. We bounced to break above a couple of long waits, which is always a good sign. I think that the market is trying to continue the overall uptrend based upon this.
The Australian dollar initially fell during trading on Tuesday but found significant amount of support near the 0.7430 level. By doing so, it appears that the market is ready to continue the overall uptrend as on the hourly chart we have seen several wicks blown through by the first candle with the Americans were responsible for. If gold can continue to rally, that should also push the Aussie dollar higher. I believe that it is only a matter of time before we reach towards the highest and beyond that to the 0.75 level. I would anticipate a significant amount of noise there, but that could become a longer-term “buy-and-hold” signal for this market.
The alternate scenario of course is that we break down a bit and sliced through the 0.74 handle. If we do, then the market could go through the motions of reaching down towards major support at the 0.7350 level, an area that I think should continue to be important. That being said, it seems much more likely that we are going to go higher rather than lower, so I think 0.75 will be tested before that level will be. Obviously, headlines can move the market as it is sensitive to gold, which is sensitive to almost everything. With this in mind, I’m bullish but I also recognize that there is still a significant amount of risk out there for those who would put money to work in this environment.