AUD/USD Weekly Price Forecast – Australian dollar form supportive weekly candle stick

The Australian dollar pulled back a bit during the week, but then bounced enough to form a massive weekly candle stick. However, this hammer needs to be broken to the upside, and when that happens this could be a nice buying opportunity. The 50 week EMA sits just above, near the 0.7150 level. Ultimately, this is a market that I think will continue to try to form a longer-term base, and if that does hold of course this could be a trend change. To the upside, we could go to the 0.7250 level above, which has been important in the past. A break above there would confirm the longer-term trend change and send this market much higher.

AUD/USD Video 15.07.19

Alternately, if we break down below the hammer from the week, that could send this market right back down to the 0.68 handle. All things being equal though, the Australian dollar does look like it’s trying to form its base, especially considering that the Federal Reserve is going to be cutting interest rates. If the market focuses on that, then the Aussie should rally significantly from there. However, the US/China trade situation continues to be a detriment to the Aussie dollar, so keep that in the back of your mind. Ultimately, if we were to break down below the 0.68 handle, then it could be a major break down in this pair, sending this Australian dollar pair much lower in a bit of a collapse. However, that does not look likely to be the case anytime soon.

Please let us know what you think in the comments below