AUD/USD Weekly Price Forecast – Aussie struggles during the week

The Australian dollar has broken down rather significantly during the week, slicing through the uptrend line, and then breaking below the psychologically important 0.75 handle. This is a very negative sign, and I think it’s only a matter of time before we go lower. When I look at the weekly chart, it’s obvious that there is a significant amount of support based upon the hammers, and I think that if we break down below is hammers it’s likely that this market will break down. The fact that we closed so lowly, that signifies that the market is extraordinarily soft, and it’s likely that we will continue to go much lower based upon that. Beyond that, there are trade sanctions being levied on the Chinese by the Americans, and of course the Chinese will retaliate.

This will directly affect Australia as it is so highly levered to the Asian economies. I think it’s only a matter of time before we go looking towards the 0.7350 level, and then possibly even lower than that. However, if we wipe out the weekly candle that we just formed, it’s likely that we would turn around and go much higher. However, this doesn’t look very likely to happen based upon the extreme negativity of the clothes, so I think it’s only a matter time before the sellers get rewarded. At best, I’m looking at this market for consolidation.