AUD/USD Weekly Price Forecast – Australian dollar stabilizes

The Australian dollar has stabilized a bit during the week, essentially printing a neutral candle stick. While this isn’t necessarily a sign that you should be buying, it is rather interesting because it forms a bullish harami. This is a candlestick pattern that is relatively rare.
Christopher Lewis
AUD/USD weekly chart, May 27, 2019

The Australian dollar gapped higher at the open of the week, and then went back and forth to form a harami candlestick pattern. This is rather bullish but I also recognize that there is an extreme amount of resistance above. The 0.70 level is major resistance, but if we can get above there this market could really start to take off. I anticipate that this pair will probably go looking towards the 0.72 handle or so on a bullish move from that breakout.

AUD/USD Video 27.05.19

However, to the downside we have massive support at the 0.68 level, and it seems very unlikely that we are going to break through there. If we did, it opens up the door to the 0.65 handle, and this would probably have something to do with a complete capitulation of the US/China trade situation. At this point in time, the market looks very well supported, but it doesn’t necessarily have the catalyst to go higher. If you are willing to hang on for months, we could be trying to carve out some type of bottom here, but I would not be looking for a move anytime soon.

Quite often, when you’re trying to change the trend of the currency pair, the bottoming out process takes what seems like an eternity. You could certainly make an argument for that scenario here. If we get any good news out of the US/China trade relations, this is the first place I would be putting money as the Australian dollar will be a major benefactor.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.