AUD/USD Weekly Price Forecast – Australian dollar testing support again

The Australian dollar initially tried to rally during the week but continued to struggle as there have been a lot of concerns when it comes to the Sino-American trade relations. That has a direct effect on the Australian dollar as it tends to mirror what goes on in China. After all, the Australian supply the Chinese with many of their raw goods.

That being said, the 0.73 level does seem to be holding as I record this, so we could find this market turning around to go higher by the time we closed out the session. The 0.73 level has been important for some time, but I would also point we have made a “lower low” on shorter time frames, and of course the Euro and the British pound both have been getting hammered. Ultimately, I think that hurts this pair, and I think the next candle could tell the entire story. With that being the case, it’s likely that the market is ready to make a significant move. If we break down from here and close below the weekly candle on the daily timeframe, I anticipate that the Australian dollar will probably go looking towards the 0.70 level. Otherwise, if the market can bounce we could turn around to go looking towards the 0.75 handle, which had been previous resistance. This is the time of year we typically see quiet trading, but the US dollar has flexed its muscles towards the end of the week.

AUD/USD Video 13.08.18