AUD/USD Weekly Price Forecast – Aussie testing major support

With the struggling relations between the Chinese and the Americans, it’s not hard to imagine a situation where the Australian dollar could fall. I believe that we are hovering above a significant support level in the form of the 0.72 level, but it has been an area that’s been very supportive in the past. In fact, this kind of reminds me of the $6000 level in the Bitcoin market, an area that has been increasingly stubborn. At this point though, if we break down below the 0.7150, then I think the door opens to the 0.70 level again, perhaps even lower than that.

The market typically will move with gold, but at this point I think this is all about the US and China and their trade relations. They seem to be breaking down even further, and that will certainly hurt the Australian economy. Remember that the Aussie dollar is a bit of a proxy for the Chinese yuan, which can’t be traded freely in most markets. Overall, I think that there is a great risk to reward ratio here, but below the 0.7150 you simply must get out of the trade if you are willing to buy. Nonetheless, this is very ugly looking, and I think in the next week or two we are going to need to make serious decisions as to how the rest of the year will look. This chart could be a great indication of risk appetite going forward as far as that’s concerned.

AUD/USD Video 03.09.18