AUD/USD Weekly Price Forecast – Australian dollar pierces major resistance

The Australian dollar spent most of the week rallying above the significant resistance barrier that had been keeping this market down for some time. The fact that we have pierced that level is of course very bullish overall.
Christopher Lewis
AUD/USD weekly chart, July 22, 2019

The Australian dollar has rallied significantly during the week, breaking above the 0.7050 level, but did pull back just a bit during the Friday session. This makes sense though, because the reality is that traders don’t like to carry a lot of risk into the weekend. However, the previous candle stick was a hammer and the fact that we not only broke above the top of that hammer and then the 50 pip range that has been so crucial tells me that the market is trying to make a bigger move for the longer-term.

AUD/USD Video 22.07.19

Ultimately though, pullback should be buying opportunities and I do think that it’s only a matter of time before we go higher. The 0.72 level above is major resistance, and that’s an area that should be targeted, and a bit of trouble. However, I also recognize that the market is forming a bit of a longer-term turn around and bullish pattern. To the downside, it’s very likely that the 0.6850 level underneath would be support and could end up being the “bottom” of the market in general. This could be the beginning of a trend change, but obviously we have a lot of different things going on at the same time.

The Federal Reserve is very likely to cut interest rates and that of course helps break down the value of the greenback, which is obviously half of the equation. Beyond that, the gold market has been rallying for some time and that helps the Aussie dollar. All things being equal, I am bullish but I recognize it’s going to be a serious fight.

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