At this point, I believe that the 0.73 level is crucial for support, and if we break down below there we could very well find ourselves going to the 0.72 handle, followed by the 0.70 level. However, I think there is enough support here that it’s more likely that we find a reason to rally, and once we do this market should explode to the upside, perhaps offering an opportunity to really gain from here. This could be a nice long term trade if we get a few positive headlines working in our favor. Otherwise, a break down from here probably could see the market go as low as 0.70 underneath. Either way, I think at that point there would be plenty of buyers as well. Pay attention to gold it has its usual correlation to this market, so if it rallies I’m sure that this market will as well.
AUD/USD Weekly Forecast - 6 August - 10 August
The Australian dollar has gone sideways again this week, but it continues to show that there is a significant amount of support at the 0.7350 level. Overall, I believe that this market will probably continue to find reasons to bounce from this general area, but I also recognize that we will continue to see a lot of noise due to the trade talks and tariffs that are being thrown back and forth between the Americans and the Chinese.
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