Yahoo Finance AUD/USD Price Forecast – Australian dollar recovers after initial move lower
The Australian dollar was a rather noisy during the trading session on Monday, initially gapping lower with all other risk assets as people became increasingly concerned about the situation in Turkey. However, things seemed to calm down when the Americans got on board, and we saw a resumption of a “risk on” attitude overall, and that was reflected in the Australian dollar itself. Ultimately, I think that this market probably finds reason enough to go higher, but I would wait until we clear the 0.7325 handle as it would show a complete turnaround and a break of short-term resistance. Otherwise, we could find ourselves rolling over, and to be honest it probably won’t take much to have most of the market scared off. If that’s the case, this market will more than likely continue to rollover until we see the 0.70 level.
At this point, we are simply trading on a motion more than anything else, although technicals can help. We are very cheap at this point, and it does look like we are trying to break out but again I would wait for a confirmation above the 0.7325 level. Otherwise, you may simply wish to stand aside unless we get a fresh, new low, then that’s a clear sign that we are going to fall apart again. Regardless, keep your position size small.
AUD/USD Video 14.08.18
This article was originally posted on FX Empire
