AUD/USD Price Forecast – Aussie looking for support

The Australian dollar has gone back and forth during the trading session on Thursday, respecting the 0.70 level as support. As long as it does, there’s a good chance that we may get a bit of a bounce. With the jobs number coming out on Friday, that will of course cause a certain amount of volatility as well. That could give us enough momentum to break out above the top of the short term range that I have marked on the chart, or perhaps even break down below the 0.70 level. However, if we were to break down below that level there is a massive amount of support all the way down to the 0.68 level on the monthly charts.

AUD/USD Video 08.03.19

Looking at this chart, I suspect there’s probably more of a risk to the upside then down for a longer term move, so I’m waiting to see if we can get a bit of momentum to take advantage of. The 0.7250 level above is a major resistance barrier, so breaking above there would of course change the entire trend. I’m not saying that’s going to happen in the short term, but clearly we could make a run in that overall direction given enough time.

It seems very unlikely that we break down below the 0.68 handle, but if we did that would be an extraordinarily negative turn of events but would probably take something along the lines of a complete failure of the US/China trade talks to make that type of meltdown happen. We are approaching the bottom, but that’s always a very slow and messy affair.

Please let us know what you think in the comments below