AUD/USD Price Forecast – Australian dollar breaks down significantly on Thursday

The Australian dollar has broken down significantly during the trading session on Thursday as the Chinese yuan has been pummeled, knowing that the Australian dollar is a bit of a proxy for that currency explains a lot of this move. I believe that the market will probably continue to struggle overall, as there are a lot of concerns with the trade war, and of course now we are starting to focus on the rotting credit situation in China. I believe that we are going to make a serious test on support here, and if we break down below the 0.73 level, market will break down and go much lower.

Otherwise, if we turn around to break back above the 0.7350 level, then I think we could make an attempt to reach towards the 0.74 level above. That being said, as I record this market I recognize that it’s less likely to happen now than it was yesterday. Overall, this is a market that I think will continue to be noisy and difficult, so keep that in mind. Gold markets will continue to be influential as well, so pay attention to them although I anticipate they will probably have their own issues.

We have seen a massive amount of US dollar strength lately, and that seems to be more of the same as I look at the charts now. I think the next couple of days are going to be very telling as to where this pair goes over the longer-term.

AUD/USD Video 20.07.18