AUD/USD Price Forecast – Australian dollar continues to struggle with resistance

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Updated: Jul 26, 2018, 03:37 UTC

The Aussie dollar has continued to pound against the 0.7450 level, an area that seems to be extraordinarily difficult. However, the one thing that I would notice on this chart is that we keep getting “higher lows.” Because of this, it’s likely that we will eventually break out, but it’s an ongoing process.

The Australian dollar continues to struggle with the 0.7450 level above, but we have pulled back several times to reattempt that breakout. I think that it’s only a matter of time before we get some type of breakout. Overall, if we can get above there, then the 0.75 level becomes the target. Once we get above that level, it’s likely that the market will continue to go even higher. Overall, the market breaking above there would signal that we are going to go much higher, as it would be the next leg up.

I believe that the 0.7350 level underneath is massive support, and I think it’s only a matter of time before that level marks the bottom of the overall trend, and it seems as if it could be the beginning of the Australian dollar turning around longer term. That doesn’t mean that is going to be easy, and quite frankly when you look at the longer-term charts you can see that there are a lot of hammers forming on the weekly charts, which of course is a very bullish sign. However, it is taken a significant amount of time to turn around but that only adds more credence to the idea of it being a “bottom”, so at this point I am not interested in shorting the Aussie dollar until we break down below the recent lows, something that doesn’t look very likely.

AUD/USD Video 26.07.18

About the Author

Christopher Lewisauthor

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.