AUD/USD Weekly Price Forecast – Aussie dollar forms yet another hammer

For myself, I believe this is essentially going to be “Ground Zero” of the Sino-American trade war. This is because the Australians offer so much in the way of raw materials for the Chinese to make those goods coming to the United States, and of course export a lot of gold, which is reflected in the value of the US dollar. Ultimately, this is a market that will have to decide but as can be very difficult to make a longer-term decision until we get some type of clarity. It looks as if we are in for a couple of weeks of sideways action, but clearly at this point it’s the domain of short-term traders. If we were to turn around a break above the 0.75 level on good news, is that point I think the Australian dollar could bounce quite nicely.

The alternate scenario as we continue to sell the rallies on short term charts, in very messy trading, which I think is probably the most likely turn of events. I would not suggest placing the trade quite yet, but pay attention to the 0.75 level, because if we break above there is good things can happen. Otherwise, a breakdown below the 0.73 level could open the door to 0.70, but again this is can be based upon news more than anything else. The trade war continues to strengthen, so now the question is how long can the Aussie hang on?

AUD/USD Video 09.07.18