AUD/USD Price Forecast – Australian dollar range bound

The Australian dollar has rallied a bit during trading on Thursday after initially falling. However, we may remain range bound, and the daily candles continue to be very unimpressive. The hourly chart looks as if it is defining a resistance barrier near the 0.7225 level, with an obvious support level near the 0.7150 level. Because of this, it’s likely that the market will continue to chop around in this area, as we just don’t have anywhere to go. With this type of range, it’s best to look for short-term charts in the meantime, because quite frankly we just won’t have much in the way of a catalyst.

This will all change today though, because the jobs number of course will move the US dollar. I would anticipate that by the end of the day we will probably end up somewhere around here though, because ultimately this pair will focus on Chinese trade spats with the United States more than anything else. The Australian economy is highly sensitive to China, so at this point it’s a bit held hostage to the Sino-American problems. Overall, I believe that the market will continue to be one that is very noisy, but a good opportunity for short-term traders. As far as a long-term trade is concerned, we would need to close below the 0.7150 level on the daily chart to begin the next leg lower to the 0.70 level. Otherwise, if we can break above the 0.7225 handle on a daily close, then we could be looking at the 0.7350 level above.

AUD/USD Video 07.09.18