AUD/USD Price Forecast – Australian dollar drifting during Tuesday session

The Australian dollar has drifted a little bit lower during the trading session on Tuesday, reaching down towards the 0.74 level. On the chart, you can see that I have a light blue circle showing where we had formed a “W pattern”, something that is of course a very bullish reversal signal, and it has formed at the 0.7350 level, an area that is very important from a longer-term standpoint on the chart. Because of this, I think we are in the middle of trying to reverse the overall attitude of the market, and therefore it will be very noisy.

If the market were to break above the 0.75 handle above, that would be a very bullish sign and it would become more of a longer-term signal to start hanging onto a trade for a larger move. Just below, I think there is more than enough support to keep this market afloat. Overall, the market should continue to be noisy, but if we can stay above the all-important 0.7350 level, I think eventually the buyers will come in and take over.

Beyond that, the weekly charts formed a massive hammer last week, which of course is a very bullish sign as well. Because of this, I think we are at the very least going to see a nice bounce, and that should be taken advantage of in the short-term charts. Alternately, if we were to break down below the 0.7350 level, the market should break down to the 0.70 level.

AUD/USD Video 27.06.18