AUD/USD Weekly Price Forecast – Australian Dollar Tests Resistance

The Australian dollar has rallied during the week, testing the 61.8% Fibonacci retracement level. We have pullback quite a bit and what you don’t see on the weekly chart is that the Thursday and Friday candlesticks were both very exhaustive looking. At this point, I would anticipate some type of pullback, but I don’t know that it will be a major breakdown. The Australian dollar is trying to form some type of base here, but it may take some time in order for it to happen.

AUD/USD Video 04.11.19

To the upside, if we can clear the 0.70 level it will be psychologically important and could send the market higher. It probably comes along with the headlights coming out of the US/China trade situation and perhaps something good coming of that. Remember, the Australian dollar is highly sensitive to the Chinese economy as Australia supplies China with so many of its raw materials for both manufacturing and construction. Ultimately, that is the main driver of what happens with the Aussie dollar.

That being said, things turned worse than we could probably send this market lower. I think that’s essentially what the market is focusing on right now, US/China more than anything else. The Aussie dollar has been grinding lower for quite some time, but I would be the first person to admit that it has not been some type of massive meltdown. Overall, the market looks likely to be choppy and noisy to say the least, but we are still very much in a downtrend.

Please let us know what you think in the comments below