AUD/USD Weekly Price Forecast – Australian dollar has very negative week

The Australian dollar has broken down again during the week, forming a very negative candle. We have broken down to a fresh, new low, and I think at this point if we break down below the bottom of the candle for the week, we should then go to the 0.70 level, which of course will attract a lot of attention. However, I think the best player is probably to continue to sell rallies, perhaps on shorter time frames though as it is difficult to hang onto trades right now. I do believe that the 0.70 level underneath will be massive support, so it’s difficult to imagine a situation where we would slice rate through there.

If we do break down below the 0.70 level, the market more than likely will go down to the 0.68 handle. That’s an area that’s even more important on longer-term charts, so at this point I don’t have any interest in trying to hang on for a massive move, but certainly I think the downside is probably the easier route to take. If we broke above the 0.7350 level, that would be a very bullish sign, but right now I don’t think we are going to see that until the US/China trade war calms down. It’s probably best to trade this market more from a short-term chart than anything else to be honest. Longer-term traders will continue to be negative, but we have sold off so much you would believe there should be some type of rally soon.

AUD/USD Video 08.10.18