AUD/USD Price Forecast – is the Australian dollar looking for a bottom?

The Australian dollar went back and forth during the trading session on Thursday, showing signs of support finally, after collapsing over the last couple of weeks. At this point, we are oversold and approaching a major support level.
Christopher Lewis
AUD/USD daily chart, August 02, 2019

The Australian dollar has gone back and forth during the trading session on Thursday, in an obvious neutral candle. With that neutral candle forming, it shows that we are at least trying to find some type a bottom. The 0.68 level is large and looming on the longer-term charts and could have a major effect on where we go next. Keep in mind that this level has been supported more than once, going back several years. At this point, I believe that the market probably will then go looking towards the 0.65 level if we were to break down below that level as it would be an obvious breach of major support.

AUD/USD Video 02.08.19

To the upside, every 50 pips seems to be an area of interest in this market, and of course the market is going to be paying attention to the US/China trade situation, which obviously is all over the place. Right now though, I think the market is getting fatigued when it comes to this and I think that what we are probably going to see is a scenario where the trade negotiations are finally going to have to come up with some type of solution for the Australian dollar to be tricked into going higher again.

I will say this: if we are going to see a turnaround it needs to be soon. The jobs number coming out on Friday of course can have its effect on this market, but at this point it seems as if the Federal Reserve did not give enough of a dovish signal to the market for the US dollar to selloff significantly.

Please let us know what you think in the comments below

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