AUD/USD Price Forecast – Australian dollar dips to end the week

The Australian dollar has broken down a bit during the trading session on Friday, which isn’t overly surprising considering that there is a lot of volatility in the currency markets as Teresa May has suggested that she was not willing to change strategies for the Brexit deal. That of course has sent the British pound lower, and therefore started to strengthen the US dollar overall. That has shown up in this market, as precious metals have gotten pummeled. However, when I look at this chart and pay attention to the Australian dollar by itself, this looks like a buying opportunity.

I think that if we can stay above the 0.7250 level, it’s likely that we will continue to reach towards the 0.7350 level after that, which has been a major level of both support and resistance recently. I think that is more than likely what we are going to be looking at overall, but if we were to break down below the 0.7250 level for any significant length of time, then we could drift back to the 0.7150 level. It’s been interesting to watch the markets pump themselves up in the face of tariffs, but I think at this point you should keep in mind that the longer-term charts are still very negative. It is because I have a “line in the sand” at the 0.7250 level, and therefore underneath there I would be willing to short this market. Keep in mind that Friday will be quadruple witching in the United States, which has a lot of options money flowing across various borders.

AUD/USD Video 24.09.18