AUD/USD Weekly Price Forecast – Australian dollar quiet for the week

The Australian dollar went back and forth during the week, testing the area just below the 0.7250 level. This is an area that of course is important as we have seen more than once, and with all of the headlines out there it’s not surprising that we continue to see a bit of hesitation.·FX Empire
Christopher Lewis
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The Australian dollar has been rather quiet this week, failing to break above the important 0.7250 level. However, we have a significant amount of support underneath at the 0.70 level, and overall this is a market that I think is going to be moving with the US/China trade relations scenario. Looking at the longer-term charts, for me it’s obvious that the 0.70 level is the beginning of major support all the way down to the 0.68 handle. The massive hammer that formed a couple of weeks ago suggests that there is a lot of interest in the Aussie underneath here, and I do believe that we are in the process of bottoming longer-term. Short-term pullbacks should be buying opportunities, perhaps reaching towards the 0.74 handle, maybe even the 0.75 level. I think that this is a longer-term turnaround, and it’s going to take a lot of time to get people interested in buying for the longer-term again.

AUD/USD Video 21.01.19

One thing that will turn things around immediately is going to be the US/China trade relations going better. There are little hints of that happening, so I think short-term pullbacks might end up being buying opportunities for investors. That being said, if we were to crush and sliced through the bottom of the massive hammer from a couple of weeks ago, that would be disastrous for the Australian dollar. Overall, if we break above the 0.7250 level, that would be the sign that buyers are starting to pick this market up again.

This article was originally posted on FX Empire

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