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AUD/USD Weekly Price Forecast – Australian dollar forms ugly bar

The Australian dollar fell during most of the weekends we continue to go back and forth. Overall, we continue to bounce around between the 0.68 level on the bottom and the 0.70 level on the top.
Christopher Lewis
AUD/USD weekly chart, June 17, 2019

The Australian dollar broke down pretty significantly over the week, but we are still well within the consolidation area that I have been telling you about for some time. While things look a bit ugly, the reality is that we still have significant work to break down below this massive support barrier. If we do, then things get rather hard to be bullish about, but we do have the Federal Reserve looking to be a bit more dovish with their monetary policy, so it would make sense to see this market somewhat supported.

AUD/USD Video 17.06.19

Beyond that, gold markets have rallied so I can have a bit of a knock on effect as well. I think all of this sets up for more chop back and forth, as we stay within this relatively tight weekly range. If we can break above the 0.70 level bone, that could open up a move towards the 0.7050 level, followed by a trend line break that opens the door to the 0.7250 level. That probably becomes more of a bigger move against the US dollar, so pay attention to how the greenback is doing it against other currencies. That could set up a relatively significant move to the upside, as it would be a nice bottom for a longer-term market move. After all, we had seen this area offer a bottom several years ago, which has yet to be broken. That being said, keep your position size small because there will be a lot of volatility and if the longer-term trade does in fact work out for you, it’s very likely that you have plenty of time to get involved.

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