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

The Australian dollar has broken down significantly during the trading session on Monday to start the week, slicing through the 0.7350 level. There is a cluster of support just below, but it looks as if we are trying to slice through it. If we do, the market is almost certainly going to go looking towards the 0.73 handle, perhaps even the 0.72 level after that. Rallies at this point are more than likely going to be sold off as Sino-American relations continue to deteriorate. With the looming Friday trade tariff deadline seeming all but a certainty now, traders are starting to be concerned about not only tariffs from the United States, but the almost inevitable retaliation from China.

It is not until those trade tensions calm down that people are more than likely going to be comfortable buying the Aussie dollar, as there will be a bid for some safety. At this point, I think that we will eventually go much lower, but we may get the occasional bounce based upon hope. At this point, it’s likely that the markets will continue to move upon headlines more than anything else, and at this point I think that it’s likely that the downside continues to be the easiest way to trade this market, because quite frankly the markets don’t like uncertainty. As you can see on the hourly chart, we had a very impulsive candle from last week that the market is trying to take out. If it does, that’s yet another reason to be negative.

AUD/USD Video 03.07.18