AUD/USD Weekly Price Forecast – Aussie dollar show signs of life

The Australian dollar has rallied during the week but is also given up quite a bit of momentum in the same area that it did the previous week. Because of this, I don’t think the candle is as bullish as some people may hope. I still believe that this market is being held hostage by the situation between the US and China, as the Australian dollar is so highly sensitive to what’s going on in the Chinese economy. With that being the case, I am more than willing to sell this market on rallies, but we could get a pop all the way to the 0.7350 level which was a scene of massive selling.

At this point, I think the market is still trying to get down to the 0.70 level, an area that has been important on longer-term charts and of course has a lot of attraction built in due to the large, round, psychologically significant figure. Ultimately, this is a market that I think will be tempted to test that area, and quite frankly we are only one comment from either President Trump or a Chinese official to push this market right back down. Ultimately, this is a situation where we should continue to see sellers jumping in to take advantage of rallies. In fact, it’s not until we get some type of resolution between the Americans and Chinese that I think this pair has the ability to rally for a larger move.

AUD/USD Video 17.09.18

This article was originally posted on FX Empire

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