AUD/USD Price Forecast – Australian dollar grinding higher

The Australian dollar rallied a bit during the trading session on Tuesday, as we have cleared the 0.74 level. The market looks likely to continue to be very noisy, and I also think that there is significant resistance above. However, longer-term charts have been showing a bit of a bottoming pattern. · FX Empire

Christopher Lewis

Updated Tue, Jul 31, 2018, 10:38 PM

The Australian dollar has rallied a bit during the trading session on Tuesday, but this is a very busy week and therefore I think it’s very unlikely that we can make a longer-term move in the next couple of days. By the end of the week, we may have some clarity, as we get the jobs number out of America. Between now and then, we have the Federal Reserve, the Bank of England, and of course any particular headline that could move the markets. Remember, the Australian dollar is highly sensitive to China, which is a bit tenuous at the moment due to the trade wars, and of course softening in general.

At this point though, I do believe that pullbacks are buying opportunities that people should take advantage of, as we have a ton of support below at the 0.73 level, the 0.7350 level, and even minor support at the 0.74 handle. I like the idea of buying these dips as value, because I believe longer-term we should continue to rally, especially if we get good news coming out of the geopolitical scene as the Australian dollar is one of the first places that traders will go looking towards to express a “risk on” or “risk off” attitude. Overall, I believe that the market should be noisy, but if you are patient enough you should be able to find value occasionally on these dips. Longer-term trades will make themselves evident by a breaking of the 0.75 level to the upside or breaking down below the 0.73 level to the downside.