AUD/USD Weekly Price Forecast – Aussie finding support at major level

The Australian dollar has formed a neutral candle stick for the week, finding support at the 0.70 level, an area that of course will attract a lot of attention. Because of this, I believe that the next couple of weeks could be crucial.
Christopher Lewis
AUD/USD weekly chart, December 31, 2018

The Australian dollar has gone back and forth during the week, forming a neutral candle stick at the 0.70 handle, a large, round, psychologically important figure. The fact that we could not break down through it suggests that a bounce could be coming, but I think it’s not going to take much imagination to see this market roll over on signs of exhaustion. Quite frankly, the Australian dollar has to worry about the Chinese economy and perhaps even more importantly the US/Chinese trade relations, which don’t seem to be getting better although there are some moves suggesting that perhaps the Chinese are willing to be a little bit more flexible.

AUD/USD Video 31.12.18

If we do break down below the 0.70 level, the next major support level underneath is at the 0.68 handle. I believe that rallies at this point will struggle at the 0.7250 level, so I be very surprised to see this market break above there. If it did, then we could see the market try to go to the 0.74 handle, but that isn’t something I’m counting on. I believe that the Australian dollar will continue to struggle as long as there are concerns with the trade war, which I think it’s going to be a major theme for the first quarter of 2019. Look for short-term rallies to start selling, or a daily close below the 0.70 level to start selling. I think it’s only a matter of time before we see weakness yet again.

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
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.
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.