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

The Australian dollar gapped lower to kick off the week, breaking below the 0.70 level. This is a relatively important turn of events, but at this point you can’t make too much out of it as we still have 200 pips of support extending down to the 0.68 level. Because of this, it’s very possible that we will see more jostling back and forth with a slightly negative attitude. However, we turned around and recapture the 0.7050 level, then I’d be willing to buy the Aussie dollar. The main point here is that I’m not willing to sell it, simply because it’s going to be very difficult to deal with to the downside.

AUD/USD Video 07.05.19

If you are looking to buy the US dollar, then it’s probably better to buy it against a different currency, as we have seen such stubborn attitudes in the Australian dollar. So in short, if I’m buying the US dollar I’m shorting the Euro, or perhaps the Pound. However, if I am starting to sell the US dollar, then the Australian dollar makes a good way to play that potential trend.

Don’t get me wrong, I don’t think that the Australian dollar is going to turn around and shoot straight up in the air, but I do think that it has a natural proclivity to levitate, and that’s essentially what we are looking for, especially with the way the markets have been behaving lately overall.

Please let us know what you think in the comments below