AUD/USD Price Forecast – Australian dollar falls significantly on Thursday
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The Australian dollar has initially rallied towards the 0.7460 level, but then pulled back towards the 0.74 level during early American trading. The strengthening US dollar isn’t much of a surprise though, because we have seen so much in the way of volatility in this pair, and of course any time there is talk of a trade war with China or currency manipulation, the Australian dollar takes the brunt of that pressure. Overall, I think that it is only a matter of time before we break out to the upside, but obviously the trading session on Thursday has been a bit of a blow to the buyers.
When you look at the chart longer-term though, it’s hard not to notice that we have seen a lot of bounces to turn things around and form a bit of a bottoming pattern. I believe that the market should eventually reach to the upside, perhaps aiming towards the vital 0.75 level. However, I would make sure to step aside as we break down in the short term, waiting for some type of supportive activity or perhaps stability to take advantage of a bit of value.
Pay attention to the gold market, it has its a correlation in this market that tends to work out longer term. Overall, I think that the market breaking above the 0.75 level should send this market much higher, perhaps bringing in a longer-term move. While we can certainly sell off further, I don’t have any interest in shorting.
AUD/USD Video 27.07.18
This article was originally posted on FX Empire