AUD/USD Weekly Price Forecast – Australian Dollar Falls
The Australian dollar has initially tried to rally during the week, but then broke down towards the downtrend line. The downtrend line of course is an area that could offer support based upon previous action, but right now the candlestick for the week doesn’t look very healthy. That being said, below the 0.68 level we more than likely break down further, but it should be noted that the market is currently testing the very top of the range that we had been in during the financial crisis over a decade ago.
AUD/USD Video 27.01.20
Looking at this chart, it’s likely that we will find buyers given enough time, but I believe that if the market were to break down below the next big figure, then perhaps it would be time to start thinking about a move back towards the 0.67 handle. Either way, I think longer-term traders are probably looking for buying opportunities, not selling opportunities.
Keep in mind that the Australian dollar is highly sensitive to the US/China trade situation, which of course is improving, but at the same time we have to worry about a lot of potential headlines and general noise. That being said, I do like the idea of looking for a buying opportunity, but it may present itself on a daily chart going forward. If we are in fact trying to change the overall trend, this tends to be a very noisy event, and therefore don’t be surprised if we get stopped out a couple of times in the process. With all of that, I am looking at shorter-term charts to give me an opportunity to place the appropriate trade.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
