AUD/USD Price Forecast – Australian dollar falls to open the week

The Australian dollar has fallen during the beginning of the week as Monday was very positive for the greenback in general. However, there is a significant amount of support underneath, especially based upon the weekly charts that had formed several hammers going into this region. Because of this, I think that if you are patient enough you should get a nice buying opportunity underneath, and the people will continue to look at this as a potential opportunity. Ultimately, this is a market that I think will continue to see a lot of noise, but at the end of the day I believe that the 0.7350 region is where value hunters continue to come back.

If we were to break down below the 0.73 level, then this pair will unwind down to the 0.70 level, kicking off even more US dollar strength longer term. I don’t think that we are going to see a major turnaround easily, and I also recognize that it’s likely that the time of year won’t necessarily help either, as a lot of the major traders out there will be away at holiday. While August is a bit quiet, there are headlines that could do that. The Australian dollar is highly sensitive to the Sino-American relations situation, so keep that in mind. I think that the market will eventually find a reason to go higher, but right now we need to see some type of calm when it comes to the trade tensions that seem to only be ratcheting up.

AUD/USD Video 07.08.18