AUD/USD Weekly Price Forecast – Australian dollar pulled back during the week

The Australian dollar initially tried to rally during the week but also gave back the gains to roll over and form a bit of a shooting star. We are starting to see resistance at an area where you would expect it, so it makes sense that we get a bit of a pullback.
Christopher Lewis
AUD/USD weekly chart, April 22, 2019

The Australian dollar initially rallied during the trading sessions that made up the week but gave back the gains at the 0.7 to handle two turn around and reach towards the 0.7150 level. At this point, it looks like a pullback is very likely but quite frankly I’m not concerned about the Australian dollar, I think this is to simply more rotating going on. The market clearly has been trying to build up a bit of momentum to the upside and it looks as if we still have some work to do.

AUD/USD Video 22.04.19

Looking at the 0.70 level underneath, it is a major support level that traders will continue to pay attention to. It’s an area that shows up on the weekly chart, so it clearly makes quite a bit of an impression to traders around the world. Because of this I believe that buying a pullback continues to work, but you may need to be a bit patient to get the opportunity. That being said, the alternate scenario of course is that we break above the top of the shooting star which would be bullish as well. At that point it’s likely that the 0.7250 level will be crucial resistance, so we can break above there then it’s likely that we will continue to reach towards the 0.74 level above. Ultimately, I think we are trying to form a bit of a longer-term base but have a lot of work to do and need some type of reason to break out to the upside.

Please let us know what you think in the comments below

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