AUD/USD Price Forecast – Australian dollar struggles during Wednesday session

The Australian dollar has been very noisy during the trading session on Wednesday, as we continue to bounce around above the 0.7350 level. That is an area that has formed a “W pattern” earlier, but now we have pulled back enough to see that the market is struggling to fire off that signal. Ultimately, this is a market that continues to be noisy and based upon the risk appetite around the world, which of course is a fluid situation as we have several concerns about trade wars and tariffs. I think this continues to be a major issue in the marketplace, and I think it is much easier to trade higher time frames than anything else. At this point, I think that the 0.7350 level absolutely must hold to keep the idea of a bounce in this market alive.

The weekly chart formed a massive hammer during the previous week, based upon the 0.7350 level holding as support. As long as that’s the case, there’s a chance of the Australian dollar bouncing. However, it appears that the “risk off” move is full intact, so I’m not surprised if this does in fact break down. If we do, I think we go to the 0.73 level, and then eventually the 0.7250 level next. A bounce from just below could send this market towards the 0.7450 level above. Either way, I think you can count on a lot of noise and therefore caution is advised.

AUD/USD Video 28.06.18