AUD/USD Price Forecast – Australian dollar bounces

The Australian dollar has fallen towards the 0.7150 level, an area that has been significantly supportive in the past. This is an area that needs to hold if the Australian dollar has any hope of recovering. I think a lot of this is going to come down to the US/China trade talks, which currently aren’t happening. There is still a lot of concern about trade tariffs between Washington and Beijing, so I think there is a bit of a wait around the neck of the Aussie dollar. However, if we can break above the 0.7225 region, then I think the market would be ready to go climbing towards the 0.7350 level after that.

I think you can count on a lot of choppy trading in the Australian dollar in the short-term, because quite frankly there are far too many moving pieces right now. However, if we were to break down to a fresh, new low, that could send this market much lower, perhaps down to the 0.70 level, which quite frankly would be the easier trade to take right now. When you look at the weekly chart though, the 0.7150 level is support for several weekly candles, and therefore I think that the market participants look likely to be extraordinarily interested in that level. Because of this, I think that a break down below that level is the easier trade to take simply because it would show such a massive break down. Otherwise, buying short-term dips might be possible, but I would not be hanging on for much. This could be one of the more difficult pairs to trade.

AUD/USD Video 06.09.18