AUD/USD forecast for the week of August 10, 2015, Technical Analysis
The AUD/USD pair initially tried to fall during the course of the week, but we turned back around to have a fairly bullish candle form. However, the 0.75 level above should continue to be resistance, so we are not interested in buying this market quite yet. With this, we are waiting for some type of resistive candle in order to start selling again, as the downtrend in this market is very strong. If keep in mind that commodities in general have been hurting for some time, and of course gold is very influential on this market as well. You have to look at the gold markets and recognize that there is nothing but weakness in that particular commodity at the moment, as we continue to meander around in a very tight consolidation area at lower levels.
Asian demand for commodities certainly is in doing Australia favors either. After all, the copper and other mineral markets out there should continue to highly influence what happens with the Australian dollar, and as most of those markets look very soft, it’s hard to imagine that the Aussie dollar is going to continue to go much higher for any real length of time. If you are patient enough, we feel that this market will offer nice selling opportunities given enough time, as we should reach down towards the 0.70 level. We recognize that the 0.75 level should be resistive all the way to at least the 0.76 level, and quite frankly it’s not until we get above the red line on this chart that we would be buyers, meaning that we need to clear the 0.80 level on at least a daily close.
Ultimately, we think that we could have a bit of a quiet spell in this market though, because we are in the middle of summer which of course isn’t exactly conducive to major moves in the currency markets due to a lack of liquidity and quite frankly most traders are more focused on vacationing than trying to trade the markets.