AUD/USD Weekly Price Forecast – Aussie finds support

You can see that the Australian dollar broke down rather significantly during the week, but as we are closing it out, we are looking at a potential hammer. The hammer of course is a very bullish sign, and if we can recapture the 0.73 level, we may have another push towards 0.75. Otherwise, if we break down below the bottom of the hammer, probably predicated upon some type of headline or break down in those US/China relations, then I think the market goes looking towards the 0.70 level. Global markets in general have been extraordinarily volatile over the last several sessions, and this chart is a great example of that. With that in mind, I do believe that a break above the 0.73 level would have a lot of people jumping in for the short term, but the question is how long can it last?

If the US and China seem to be warming relations, that should do nothing but good things for the Australian dollar. If they break down, the 0.70 level will be a major battlefield, and quite frankly I think it will be to juicy of a target for people to ignore. A break down below there could be very negative indeed. Unfortunately for the Australians, the way the currency trades has almost nothing to do with their own economy, and they are at the whim of Chinese and American officials, which seem to rock headlines every few days. If you do decide to take a long position on a break above the 0.73 level, be advised that it’s going to be very bumpy.

AUD/USD Video 20.08.18