AUD/USD Weekly Price Forecast – Australian dollar shows signs of strength

The Australian dollar has rallied significantly during the trading session over the week, slamming into the 0.70 level. That’s an area that has been important more than once, so now it looks as if we are going to retest this previous major support level. There is also the downtrend line underneath, and with that in mind it’s likely that you will eventually see an exhaustive candle, perhaps on the shorter-term chart, that you can take advantage of. However, if we do break above the 0.7050 level on a daily close, then it’s possible that we could go looking towards the 0.72 level.

AUD/USD Video 10.06.19

As you can see on the chart, there is a significant amount of support extending all the way down to the 0.68 level, but I think we stay in this range for a while, because quite frankly there are a lot of concerns when it comes to the US/China trade relations, and that of course has a major influence on the Australian dollar as the Australian economy provide so much in the way of hard commodities for the Chinese manufacturing and construction engine.

At this point, I believe that we are trying to form a longer-term base, but we need the fundamental news to drive the pair higher. Until we get some type of good news coming out of the US/China situation, or perhaps the Federal Reserve actually makes a move in softening its monetary stance, this pair will be choppy and difficult for the longer-term trader. However, one has to think that the longer-term value hunters are starting to step in.

Please let us know what you think in the comments below