AUD/USD Weekly Price Forecast – Australian dollar continues to chop

The Australian dollar has initially rallied a bit during the week but gave back quite a bit of the gains as we continue to see a lot of noise in this area. The Australian dollar is of course a proxy for China and by extension the US/China trade talks. While those having gone anywhere, they haven’t exactly broken down either. I think at this point we are trying to form some type of bottoming pattern for this pair. This is especially obvious when you look at the monthly charts and can see just how supportive the 0.70 level is down to the 0.68 handle.

AUD/USD Video 01.04.19

Speaking of that support, you can see that the massive support level is very much intact, shown by the huge hammer that pierced that area but then turned the market completely around. Overall, I suspect that we will eventually go looking towards the 0.7250 level, and then possibly even the 0.75 level. Expect a lot of choppiness but that’s going to be nothing new considering that this pair of course thrown around by headlines involving trade wars, global economic weakness, but we also have the gold market that will have a great influence on this market.

On the other side of the equation you have the Federal Reserve which is at least a year away from raising interest rates and that puts a bit of an upward pressure on this pair as we can keep the greenback somewhat soft.

Please let us know what you think in the comments below