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

The Australian dollar has rallied a bit during the week, breaking above the 0.71 handle, showing signs of life. However, this is a market that has been very negative for some time, so it was only a matter of time before the bounce had to calm. I think at this point though, you are probably better off waiting for some type of exhaustive candle above to start shorting. The 0.72 level is significant resistance, and I think it’s only a matter of time before we get a selling opportunity near that area, assuming that we could even get there. Overall, I think that this is a market that continues to suffer due to the Sino-American trade relations, and of course the overall US dollar strength in general.

The 0.70 level underneath is a large, round, psychologically significant figure, and I think it will be attracted to traders who are trying to get down to lower levels. That’s an area where I would anticipate a lot of support, but quite frankly when I look at the longer-term charts it appears that there is even more support at the 0.68 level, so that’s probably your true target. Overall, if you are patient enough you should get an opportunity to short this market at a higher level, and if you are looking at the chart, it’s very difficult to deny the fact that the Australian dollar has been hammered over the last several months.

AUD/USD Video 15.10.18

This article was originally posted on FX Empire

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