AUD/USD Price Forecast – Australian dollar rallies to kick off the week

The Australian dollar has pulled back slightly to kick off the week but turned around as the 0.73 level has offered significant support. If we can clear the 0.7350 level, the market is likely to continue going higher, perhaps reaching as high as 0.75 over the next several sessions. Ultimately, this is going to be very difficult market to trade if you are skittish when it comes to volatility. However, the market looks very likely to be a “buy on the dips” situation. I think the 0.73 level underneath is going to be crucial, so if we break down below it we could drop rather significantly.

Overall, I believe that the greenback is going to continue to give back some of its gains, as people calm down about potential trade war issues. However, if negativity crosses the wires between the Chinese and the Americans, the Australian dollar will be the first place people look to start selling against the greenback, as they run toward safety again. The market will continue to be very choppy, but that’s to be expected when you are trying to reverse the overall trend. We have recently seen a lot of “risk off trading”, and there are a lot of orders to clear to the upside if we are in fact going to go higher. I currently believe that the 0.72 level is the “floor” of any hope to the upside.

AUD/USD Video 28.08.18