AUD/USD Weekly Price Forecast – Aussie struggles slightlyThe Australian dollar struggled a bit during the week, but as you can see seems to be finding a bit of support at the 0.72 level. That’s a good sign, if we can stay above that level I think we will more than likely see another attempt to reach the 0.7350 level.
The Australian dollar has been very resilient considering that we have a major flareup in tensions between the Americans and Chinese. Remember, the Australian economy is highly sensitive to what goes on in China, and if there’s going to be a significant escalation to the trade war, it would make sense that it hurts the Aussie economy and therefore the currency. I also recognize that we have seen a major break out above a shooting star at the bottom of a downtrend, sometimes referred to as an inverted hammer, and that is generally a very positive sign as well. That doesn’t mean that it’s good to be easy to go higher, just that the market is certainly trying to make that happen.
The 0.7350 level will be significant in its importance though, so don’t underestimate that. If we can break above that level, then we will more than likely go looking towards the 0.75 handle, and then possibly even higher than that. Expect a lot of noise, and of course pay attention to what golds going, because it can lead the way quite often. At this point, it’s difficult to put a lot of money in the market, as there is so much in the way of noise but I also recognize that we are getting at extraordinarily low levels, so as long as things stabilize and don’t escalate too much, it’s very likely that we will see value hunting continue.