AUD/USD Price Forecast – Australian dollar continues to test support

Christopher Lewis
Updated
The Australian dollar initially tried to rally during the trading session on Tuesday, as we continue to see a lot of noise around the 0.70 level. That being the case, it looks as if we are going to continue to see a lot of noise, and of course a lot of struggles.

The Australian dollar continues to find buyers just below the 0.70 level, an area that is a large, round, psychologically significant figure, and of course an area that has been important on longer-term charts. Keep in mind that this is a “risk on/risk off” pair, and if that’s going to be the case, pay attention to stock markets and the global markets overall. Ultimately, there is a massive support level all the way down to the 0.68 handle, which is massive in its application.

AUD/USD Video 08.05.19

A break down below the 0.68 level could signal a bit of a disaster for the Aussie dollar, but in the meantime it looks as if a bounce from here is going to continue to be the way going forward. If we can break higher, and get some type of good economic news, we should continue to find short-term buying opportunities.

If we can break above the 0.7050 level, then we should be able to pick up another hundred pips. In the meantime, look to short-term scalping opportunities for bounces. If that’s the case, unless you are a short-term trader, you can’t play much in this market until we clear that the 0.7050 level again. If the Americans and the Chinese can get it together, that would be extraordinarily bullish for this market and could send buyers back into the Aussie. In fact, that might be the catalyst to finally form a bottom in this pair.

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This article was originally posted on FX Empire

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