AUD/USD Price Forecast – Australian dollar bounces wildly

The Australian dollar has bounced rather hard after breaking down during the flash crash in early Asian trading. There is a lot of concern now about the Chinese economy, and that of course has a lot of negative effect on the Aussie dollar. Beyond that, if we have a lot of volatility due to the jobs number, then we could have a significant move just waiting to happen.

AUD/USD Video 04.01.19

The Australian dollar has found support near the 0.68 level, which is something that I anticipate it due to the fact that it was an area that had been important on longer-term charts. I think that the level holding at support is probably encouraging, but we need to see as the market clear the 50 day EMA, pictured in red on the chart, in order to have a hopeful opportunity for a longer-term trade to the upside. I think that the Australian dollar is going to struggle regardless, because quite frankly we have so much in the way of negativity when it comes down to the US/China trade relations, although we are starting to see signs of flexibility by both leaders. Beyond that though, the poor economic numbers coming out of mainland China will also cause issues, so I don’t necessarily believe that the Australian dollar has gotten away from trouble at this point. I think we will still have selling opportunities, but the jobs figures coming out of America during the Friday session could change everything.