AUD/USD Weekly Price Forecast – Australian Dollar Forms Bearish Candle

The Australian dollar has rallied during most of the week but got hammered after the Americans killed an Iranian general be an airstrike. This was a major “risk off” type of move, and at this point it’ll be interesting to see whether or not the Australian dollar can hang on. This is going to be more influenced by the US/China trade relations and that of course seem to be getting better, but the candlestick is one that leaves a bit to be desired. Because of this, I would be a bit cautious but if we were to break above the top of the weekly candlestick that should kick off a fairly significant move to roughly 0.72 above.

AUD/USD Video 06.01.20

If we break down, the 0.69 level should offer significant support as well, but if that gets broken to the downside, we probably continue even lower. Remember, this is a potential trend change and that is always a messy affair. We are sitting on top of the 50 weekly EMA which is also an area that people will pay attention to and of course with the January 15 signing of the “Phase 1 deal” seemingly ready to happen, that should be good for Australian general. Ultimately, this is about risk appetite, and it certainly got a bit of a shot across the bow due to the airstrike, but the Australian dollar is probably going to pay much more attention to China and all things China related. With that in mind I anticipate that a pullback will probably be somewhat shallow. That in mind I would love to buy this pair above the weekly high.

Please let us know what you think in the comments below