AUD/USD Weekly Price Forecast – Aussie dollar finds supportThe Australian dollar flushed much lower during the “flash crash” this week due to Apple suggesting that they were concerned about the Chinese economy. However, we have turned right back around to form a massive hammer, so there are a lot of things to think about at this point.
The Australian dollar broke down significantly during the trading this week, reaching below the 0.68 handle, an area that has been massive in its importance, as we have bounced from their previously. If we do break down below the bottom of the hammer, then the market should go much lower, perhaps down to the 0.65 level. Keep in mind that the Australian dollar is highly levered to the Chinese economy, which of course has been flashing red lights for some time. Because of this, I believe this pair will be extraordinarily volatile. Looking at the candlestick alone though, you could make an argument for a bounce.
AUD/USD Video 07.01.19
That bounce for me could lead as high as the 0.7250 level, but at that point I think we are going to run into more trouble. Is this the absolute bottom? I think that remains to be seen, but the Americans and the Chinese are meeting rather soon, so I think at this point we could get some hope into the pair. Looking at the daily chart though, we did struggle a bit after the jobs figure, so I’m not overly confident about the rally, but if we do break above the 50 EMA on the weekly chart, pictured in red, then I think that would be a good sign that we could go much higher. This is all going about the US/China situation, and if the two countries can make headway in the trade dispute, that could send the Aussie much higher.