AUD/USD Price Forecast – Australian dollar plummets on Thursday

As the Australians question the longevity of the Prime Minister, the reality is that there was a bit of a “risk off” move during the day in the currency markets anyways, so this of course weighed upon the Australian dollar. Ultimately, I believe that the Australian dollar will find buyers, but right now the 0.7350 level has proven itself to be a bit too resistive. I anticipate that we will probably make a move towards the 0.72 handle, which should be very supportive. The alternate scenario is that we recapture the 0.73 handle, and if we do I think at that point market participants will probably continue to drive towards the 0.7350 handle.

Keep in mind that the Australian dollar is also sensitive to what goes on with Asian trading, so the Sino-American talks will have its part to play although we are at low level talks right now, not major talks. With that in mind, I believe that we will eventually get the proper good news to send this pair higher, but right now we obviously don’t have it. Be cautious and use small amounts of trading capital for this market, because quite frankly it will probably be difficult to stomach over the next couple of days. However, once we do rally it could be rather quick and brutal, offering plenty of profit. Pay attention to the US dollar overall, and don’t forget that part of the equation as it is so crucial.

AUD/USD Video 24.08.18