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

The Australian dollar went back and forth during the course of the week, as we continue to see a lot of support underneath at the 0.70 level. At this point, the 0.70 level is massive support that extends down to the 0.68 handle. That even shows up on the monthly charts, and when I look at this market, I think we are trying to form a bit of a base. We need some type of conclusion to the US/China trade relations, and then we can start to put serious money in this market to the upside. The market will of course try to get in front of the move. After all, markets tend to be forward-looking instruments, as the Australian dollar is highly sensitive to the Chinese economy, and what goes on there. Australia is a major supplier of raw materials to the Chinese industrial complex. Because of this, the Australian dollar has a lot of sensitivity to it.

AUD/USD Video 08.04.19

It’s not until we break down below the 0.68 level that I would be selling this market from a longer-term standpoint, and it seems very unlikely that’s going to happen anytime soon considering just how important the area is from a longer-term standpoint as far support is concerned. With this, I am a buyer overall but I also recognize that a lot of patients will probably be needed to realize gains. It is at this point I believe we are trying to form a bit of a bottom longer term and a massive trend change.

Please let us know what you think in the comments below