AUD/USD Weekly Price Forecast – Australian dollar rallies

The Australian dollar initially dipped a bit during the week but turned around to show signs of life again and broke above the 0.7250 level. Because of this, it looks as if we are going to attempt to grind higher but longer-term traders will need to keep the keyword “grind” in the back of their buying. At this point, I suspect that the Australian dollar is going to pick up a bit of momentum based upon the Federal Reserve if nothing else, as they have softened their stance. This of course is more about being negative for the dollar than it is pushing the Aussie higher based upon anything related to Australian strength.

AUD/USD Video 04.02.19

In fact, the US/China trade agreement is probably the one thing that is keeping a bit of a lid on this market. The Australian dollar of course is going to be held hostage to the US/China trade situation, and although things look rather dire at the moment, the reality is that the market also looks as if it has put a bit of a bottom underneath, with the 0.68 level being the bottom of the massive “floor” in the market that extends all the way to at least the 0.70 level. I believe that the weekly hammer from about a month ago is a strong sign that we have found initial footing, now all we need is a catalyst to go higher in the form of something related to China. Until then, expect a lot of choppiness and indecision, but with an upward slant as we are trying to form a bottom longer term.