AUD/USD Price Forecast – Australian dollar rallies to kickoff week

The Australian dollar has rallied significantly during the day on Monday, showing signs of life again. The market wiping out the impulsive negative candle from Friday would be a very good sign, and I think at this point the pair is going to focus on a couple of different things. The first thing of course is that the Chinese situation continues to be very tenuous with the United States, and the Australian dollar of course is very sensitive to the Chinese economy. The second thing is the US dollar itself. When I pay attention to the currency markets, the first market that I look to is the US dollar on the whole. If it continues to rally the way it has in a bit of a “risk off” move, then that will directly affect this pair as well. However, as things stand right now it is somewhat encouraging that we have rallied so significantly, the question is whether or not we can break above that impulsive negative candle.

Otherwise, we will more than likely go back down to the lower levels and perhaps press the 0.7150 level. The 0.7150 level is the bottom of several weekly candles over the last several years and should be thought of as massive support. In general, I think that it’s only a matter of time before we try to rally, or possibly even break down significantly. It’s going to be one thing or the other, we will either rally in a bit of a grind or break down drastically.

AUD/USD Video 04.09.18