AUD/USD Price Forecast – sideways action on Monday

The Australian dollar hasn’t done much during the Monday session, as we continue to hang around the 0.7425 level, so I suspect that we are waiting on is an answer to what global risk appetite is going to do after Pres. Trump suggested that there could be more tariffs coming. I think the market is becoming somewhat immune to this though, and eventually the Australian dollar should continue to go higher. However, if we break down below the 0.74 level, that cancels the “W pattern” that I spoke about in the preamble and could send this market back down to the 0.7350 level.

The weekly candle is a hammer though, and that helps the idea of a burgeoning support region just below. I think that the market will eventually find a reason to go higher, if for no other reason than we are a bit oversold as of late. If we can break above the 0.75 level, that’s a very bullish sign, and could send this market closer to the 0.76 level. Beyond that, I suspect that the next major target will be the 0.80 level as it is a large come around, psychologically significant figure that has attracted a lot of attention in the past. Beyond that, you should pay attention to the Gold markets as they have their historical relation to this market as well, and obviously large moves in that market will have its typical influence in a positive correlation.

AUD/USD Video 26.06.18