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AUD/USD Weekly Price Forecast – Australian dollar falls hard for the week

By:
Christopher Lewis
Updated: Jul 26, 2019, 17:02 UTC

The Australian dollar broke down significantly during the week, breaking below the bottom of the shooting star that formed during the previous week. However, there is a significant amount of support underneath that could come into play so keep that in mind. Ultimately, we are about to make a serious decision.

AUD/USD weekly chart, July 29, 2019

The Australian dollar broke down below the bottom of the shooting star from the previous week, which of course is a very bearish sign. However though, we have a couple of other things that we should be paying attention to. For example, the downtrend line of course has held, so that is a sign of the downtrend hanging on, but we also have massive support underneath at the 0.6850 level. That level has offered a significant amount of support, and if we could break down below there, it could really start to unwind this pair. The 0.68 level underneath was major support on longer-term charts, so if we broke down below there that could send the Australian dollar to extraordinarily low levels.

AUD/USD Video 29.07.19

That being said, the 0.6850 level is supportive, and I think that a bounce from there could be a buying opportunity. Ultimately, this is a market that will be sensitive to the US/China trade situation and of course overall risk appetite. Keep in mind that the Australian dollar being so highly levered to the Chinese economy has served that currency well for decades, but we are in a bit of transition when it comes to not only US/China trade deals, but also the Chinese economy itself. That being said, if we get more of a “risk on” move, then I think that the Aussie can rally. We have the Federal Reserve likely to cut rates, so ultimately this is a market that has a lot to think about, and I would be very interested in seeing what happens at 0.6850 underneath. I would wait for the next weekly candle to make some type of decision.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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