AUD/USD Weekly Price Forecast – Australian Dollar Forms Massive Bullish CandleThe Australian dollar has broken higher during the trading week, as we continue to see moves to the upside. There is a massive amount of support underneath at the 0.67 level as we have formed a bit of a “double bottom” in that area, and as a result now we have to question whether or not a trend change is about happen.
The Australian dollar has rallied significantly during the week, showing signs of life yet again. Beyond that, the question now is whether or not this” higher low” is in fact worth paying attention to. It’s also worth noting that the Chinese are starting to soften their stance a bit when it comes to the US/China trade situation, and therefore it’s likely that we will continue to see the Australian dollar react to it. At this point, the market looks very likely to see a lot of back and forth due to the trade war situation. Remember, Australia is highly sensitive to the US/China trade situation, as the Australians are major suppliers of raw materials to the Chinese.
AUD/USD Video 09.12.19
Beyond that, we are at historically cheap levels, so those who are more long-term incline can start to build core position is with the understanding that we could go as low as 0.65. The market is probably due at least some type of relief rally, but at this point it will be very noisy and difficult to deal with. You need to have a lot of wherewithal to hang on to this type of trade, but it certainly looks as if we are getting close to a potential trend change. If we were to somehow break down below the 0.65 level, that would be catastrophic for the Aussie dollar and probably the beginning of some type of financial crisis.
Please let us know what you think in the comments below