AUD/USD Price Forecast – Australian dollar crashes into support

The Australian dollar fell hard during the day on Wednesday, as the US dollar strengthened around the world. We crashed into the 0.7350 level, an area that has been massive support on longer-term charts. Because of this, an opportunity may be presenting itself. · FX Empire

Christopher Lewis

Updated Wed, Jul 18, 2018, 10:52 PM

The Australian dollar has crashed into the major support level of 0.7350 during trading on Wednesday, an area that has created more than one hammer on the weekly chart. This is an area that simply must hold for the Australian dollar to have a chance to turn things around, but quite frankly I think it probably will. If it doesn’t, it’s likely that we could break down rather significantly, perhaps down to the 0.73 level, which I see as the bottom of this entire support “zone.” A breakdown below that level would be rather catastrophic for the Australian dollar and would probably coincide with massive US dollar strength across the world.

That being said, I do see a lot of noise to chew through above, so any rally from here is going to be significant resistance above. In other words, although I think that this could be an excellent buying opportunity, it’s not going to be for the faint of heart, or so-called “weak hands.” This is a position trade just waiting to happen, not a quick scalp. If you do not have the ability to hang onto trades, this is not where you need to be buying.

If we did break down, and most importantly below the 0.73 level, I think this market could unwind to the 0.70 level much quicker than many people would anticipate. This would probably coincide with massive selling in the gold market as well, as it would almost certainly be a pro US dollar story more than anything else.