AUD/USD Price Forecast – Australian dollar finds support Wednesday

The Australian dollar pulled back a bit during the trading session on Wednesday, reaching down to the 0.74 level, an area that of course being a large, round, psychologically significant figure makes sense to offer at least short-term support. However, you can see plainly that the market has rallied over the last several weeks, and at this point it looks to be trying to build up the momentum to go higher. The most recent swing high has been a little bit lower than the previous one, unless of course we hold here and then continued the drive to an even higher recent high. Looking at the chart, it’s a little too early to tell whether yesterday was a swing high or not.

Ultimately, pay attention to gold, it should have its influence on this market as well. Beyond that, we will have the Asian trade situation between the United States and China that has an effect on the Aussie dollar, and considering how that has deteriorated recently, the Australian dollar has held up quite well. I think at this point; the market is likely to find a reason to go higher but I think it’s not going to be easy. This market will be erratic, but I refer you to the longer-term charts which have formed several hammers just below on the weekly timeframe, normally a good sign that there is big money trying to pick up value when we dip, especially near the 0.7350 level.

AUD/USD Video 02.08.18