AUD/USD Price Forecast – Australian dollar range bound overall on Thursday

The Australian dollar has been choppy during the trading session on Thursday, as we continue to see a lot of noise in this market, mainly due to the trade war fears as the Australian dollar is quite often thought of as a proxy for Chinese industrial markets. Remember, Australia supplies the Chinese and most of Asia with the hard commodities that are often needed. If there are continued trade war concerns, the Aussie of course will have a bit of trouble.

The Australian dollar has found significant support at the 0.7350 level, an area that I think offers a lot of demand, not to mention the fact that the weekly charts have formed hammers. In fact, we have formed several in a row, showing signs of significant bullish pressure. I think that if we can rally from here, the market will probably go looking towards the 0.75 level over the longer-term. We have a gap that we started out the week with, so we could go looking to fill that initially, which would be the 0.7450 level. Either way, this market looks very bullish in the short term, but I also recognize that we need some type of relief rally or at least some type of bullish news to bring in a bit of a “risk on” attitude to market participants around the world. Once that happens, the market should go higher.

AUD/USD Video 13.07.18