AUD/USD Price Forecast – Australian dollar falls significantly on Thursday

The Australian dollar has initially rallied towards the 0.7460 level, but then pulled back towards the 0.74 level during early American trading. The strengthening US dollar isn’t much of a surprise though, because we have seen so much in the way of volatility in this pair, and of course any time there is talk of a trade war with China or currency manipulation, the Australian dollar takes the brunt of that pressure. Overall, I think that it is only a matter of time before we break out to the upside, but obviously the trading session on Thursday has been a bit of a blow to the buyers.

When you look at the chart longer-term though, it’s hard not to notice that we have seen a lot of bounces to turn things around and form a bit of a bottoming pattern. I believe that the market should eventually reach to the upside, perhaps aiming towards the vital 0.75 level. However, I would make sure to step aside as we break down in the short term, waiting for some type of supportive activity or perhaps stability to take advantage of a bit of value.

Pay attention to the gold market, it has its a correlation in this market that tends to work out longer term. Overall, I think that the market breaking above the 0.75 level should send this market much higher, perhaps bringing in a longer-term move. While we can certainly sell off further, I don’t have any interest in shorting.

AUD/USD Video 27.07.18