AUD/USD Weekly Price Forecast – Australian dollar drops

The Australian dollar has broken down a bit during the week, slicing through the 0.71 handle. Below there, the 0.70 level is massive in its importance, and that support should hold fairly well, unless of course we get a major “risk off” push. If we break down below the 0.70 level, the next support level in my estimation as the 0.68 level based upon previous action, and of course longer-term charts. Nonetheless, I think that the Australian dollar will continue to struggle due to the US/China trade war, and as that continues to be a bit of an issue, the Aussie will be punished.

AUD/USD Video 24.12.18

Beyond that, as global growth seems to be decelerating, that of course hurts commodities in general and puts money into US bonds. Overall, I believe that rallies are to be sold, and that we will eventually go to at least the 0.68 handle. If we get some type of financial crisis going, which people are starting to worry about, that could really break this pair down. If we turn around and break above the 0.75 handle, that would be an extraordinarily bullish sign, but I don’t see it happening in the short term, and I believe that the Aussie continues to be sold on rallies as we have seen so many times over the last couple of months.