AUD/USD Weekly Price Forecast – Australian Dollar Has Strong Week

The Australian dollar initially pulled back a bit during the week but turned around to explode to the upside. Ultimately, this was a very nice reversal candle stick but we are looking at significant resistance above. In this scenario it could very well see the market role right back over, especially considering that the Australian dollar is so highly sensitive to the US/China trade situation as the Australians are major suppliers of hard commodities to the Chinese economy.

AUD/USD Video 21.10.19

Beyond all of that, the Australian dollar is considered to be a “commodity currency”, so therefore it’s likely that if we get a run back into the greenback, that could send this market much lower. We are in a downtrend after all, but you can also make a strong argument for the idea of it being oversold. If that’s going to be the case, we will clear the 0.69 level would probably go looking towards the 0.70 level after that. If that happens, I would anticipate a lot of selling pressure as it is a large, round, psychologically significant figure and a place where we’ve seen a lot of action in the past. Beyond that, there is a major breakdown candle stick from that level as well, showing that a lot of volume enter the market at that point. Ultimately, I believe that this is a market that will continue to be negative, but perhaps needs to reset a bit to the upside before offering more profits for the sellers.

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This article was originally posted on FX Empire

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