AUD/USD Price Forecast – the Australian dollar continues to dance around a major support

The Australian dollar of course was very noisy during the trading session on Thursday as we hang about the 0.7350 level, an area that was very supportive during the previous week. If we can break down to a fresh, new low, it’s likely that we could continue to go down to the 0.72 level. After that, it’s likely that the market goes down to the 0.70 level. Otherwise, if we turn around and bounce from here, I suspect that there is a lot of resistance just above, especially near the 0.7450 level, where we fell from last time.

The Australian dollar is going to remain very sensitive during the next several days as we continue to see a lot of noise coming across the newswires about trade tariffs and trade wars, and that of course will make the Australian dollar very skittish as the Australian economy is highly levered to growth in Asia and if the trade wars continue to be escalated, it’s likely that the Australian economy will suffer. If we break down below the lows of the trading session, the market should eventually go much lower, perhaps down to the 0.7250 level initially, and then eventually the 0.72 level. That being said, if we get some type of good news coming out of the trade war front, it’s likely that we will see the Australian dollar rally as a result, if for no other reason than to begin a “relief rally.”

AUD/USD Video 29.06.18