AUD/USD Weekly Price Forecast – Australian dollar shows signs of support
The Australian dollar has gone back and forth during the week, initially falling towards the crucial 0.68 support level before bouncing towards the 0.6950 region. At this point, the pair is going to continue to be very noisy because we have a lot of different moving pieces. At this point, the Federal Reserve softening its stance for monetary policy of course will work against the value of the US dollar. However, you should also keep in mind that the Australian dollar is highly sensitive to the US/China trade talks, which haven’t really gone anywhere.
AUD/USD Video 24.06.19
With the G 20 summit right around the corner, I think we could start to see a bit of volatility in this pair, but right now I think we are essentially stuck in a range as marked by the blue box. If we were to break above the 0.70 level on a weekly chart, then the market could continue to go towards the 0.7250 level. Alternately, if we break down below the 0.68 level, the market could go looking towards the 0.65 handle. That of course is an area that will attract a lot of attention as it is a large, round, psychologically significant figure.
Unfortunately for this pair, it’s so sensitive to the Chinese trade situation, so therefore it’s probably going to be “dead money”, at least until we can get some type of resolution to whatever’s going to happen at the G 20. It simply will move the market based upon perception, so it’s probably best to stay away from the Aussie right now.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
