AUD/USD Price Forecast – Australian dollar falls

The Australian dollar fell rather hard during trading on Wednesday, slamming into an area that should begin to be somewhat supportive. That being the case, I do think that we will probably see a turnaround.
Christopher Lewis
AUD/USD daily chart, February 07, 2019

The Australian dollar broke down significantly during the trading session on Wednesday, as we have reached an area that has started to see buyers in the US session. I believe at this point it’s very likely that we are going to see a bounce coming soon, somewhere near the 0.71 level. I think the market will more than likely find plenty of reason to go higher if we can get good news coming out of the US/China situation. Remember, this is the Lunar New Year in Asia, so the Chinese aren’t even going to be influential at this point.

AUD/USD Video 07.02.19

I do think that the 0.70 level is a massive area of support that should extend down to the 0.68 level. That is a massive “floor” in the marketplace and I think that it is only a matter time before value hunters come back into the marketplace. If we can get good news coming out of the US/China situation, that should significantly change the attitude of this market if we can get some type of good news. If we do, I suspect that the Australian dollar will take off to the upside as it is not only sensitive to the Chinese situation, but it is also on the other side of the trade from the US dollar, which has a softer Federal Reserve standing behind it. As we have fallen so far during the day on Wednesday, I am now looking for supportive candles to start buying as we have gotten back to what I would call the value zone.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US