AUD/USD Price Forecast – Australian dollar continues to test major support

The Australian dollar has fallen again during trading on Tuesday, as we continue to see a lot of weakness in emerging market currencies, and of course concerns over the US/China relations. The Australian dollar is particularly sensitive against the Chinese economy, and if it looks as if there’s going to be trouble there, then of course the Australian dollar will suffer. Ultimately, this is a market that I think breaking below the 0.7150 level would be a major negative sign. At that point, I would anticipate that the market would go to the 0.70 level. In fact, it would probably go there very quickly.

The market participants continue to be very skittish, but that shouldn’t be anything new as these talks between the United States and China drag on. The occasional tweet, the statement, and everything else that can come out of both leaders will move these markets. The US dollar continues to strengthen against emerging market currencies, and that of course has a lot of people concerned. If it continues to show strength over there, it most certainly will overhear. If we were to turn around to break above the 0.7250 level, the market could go to the 0.7350 level which is the top of the recent consolidation. The 0.7150 level underneath is massive support, as it is the scene of the bottom of several weekly candles in the past. Overall, this is going to be a very interesting place to watch and I would be very cautious. I would only bring a full position on board if things had been proven to be able to continue going higher or lower. Be cautious of the next couple of days.

AUD/USD Video 05.09.18