AUD/USD Weekly Price Forecast – Australian Dollar Continues To Grind

The Australian dollar tried to rally during the week, but then ran into a bit of a buzz saw when it comes to exhaustion. Ultimately, the market has broken above a major downtrend line, and that of course is a very strong sign, but we have also seen a bit of resistance at the 50 week EMA. This market continues to be very difficult to trade though, because it is in the midst of what I believe could be a trend change. With this, expect a lot of back and forth, but ultimately, we may be able to turn around a break above the 0.70 level. If we do, then the market goes much higher.

Looking at the chart, we have formed a massive hammer from the previous week, and we are still in the middle of it so you can’t read too much into the pullback. This market of course is reacting to the idea of the United States and China working things together after such tensions is a good sign for the Australians and the demand for Australian commodities. If that’s going to be the case, then it’s very likely that we should see a continued push back and forth but remember that when a trend change happens it’s a big deal and therefore it’s not necessarily the easiest thing. At this point though, you need to see the market recapture the 50 week EMA to start buying. As far as selling is concerned, I see far too many “higher lows” underneath.