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

The Australian dollar of course is sensitive to the trade war talks coming out of the United States and China, and if we can avoid any escalation of that we should see the Australian dollar rally. I believe that given enough time, that’s exactly what will happen. However, if we break down below the 0.73 level, the market would then go down to the 0.72 level, perhaps even the 0.70 level. Gold has its usual influence as well, but truthfully I think that the market will continue to find plenty of reasons to rally, as we are simply overdone to the downside. Overall, I think that the market will probably go looking towards the 0.75 level above, and then eventually the 0.80 level.

If we were to break down below the 0.70 level, that would be extraordinarily catastrophic for the Australian dollar, perhaps sending it down to the lows. I believe that the market continues to be noisy, but there are plenty of reasons to think that there should be demand underneath based upon the structure of the market. Things will be noisy, because there are going to be tweets, comments, and headlines that continue to make traders nervous about the overall situation between the United States and China. However, so far the tariffs have been somewhat limited, and I think that is part of what’s giving market participants a little bit of help and hope.

AUD/USD Video 16.07.18