AUD/USD Price Forecast – Aussie has a tough day

The Australian dollar was very noisy during the day on Thursday, perhaps in reaction to North Korean statements suggesting that the D nuclear is Asian deal may not go through if certain things don’t happen. Most market participants know that this is just simple blustering, and perhaps a bit of an attempt to influence the negotiations later on. That being said, this should last that long and quite frankly I don’t think that it would be very prudent to base a trade upon something as unpredictable as the North Korean regime. With that in mind, I anticipate that we will bounce and go looking towards the 0.75 level again. Once we do, this market is very likely to skyrocket as it would be a major break of resistance.

Remember the gold has its usual influence, but right now there are far too many moving pieces to focus solely on that trade. Think of this pair is more of a respirometer than anything else, which of course we have plenty of. The lack of liquidity will help either as we are in the middle of vacation season so keep that in mind also. I believe that the Australian dollar has plenty of support underneath based upon weekly charts that have formed hammers, which of course outweigh the hourly charts in any serious analysis. That doesn’t mean it’s going to be easy, it just means that we should find buyers underneath all things being equal.

AUD/USD Video 10.08.18