AUD/USD Weekly Price Forecast – Aussie dollar finds support

The 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.
Christopher Lewis
AUD/USD weekly chart, January 07, 2019

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.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US