The Australian dollar initially tried to rally during the day on Friday but then gave back all of the gains and started to break back down. We have recently broken down below the 0.75 handle, and of course an uptrend line so both of these are negative turns of events. I think that the market should continue to go towards the 0.7350 level. I think at this point, it’s likely that the Australian dollar will continue to suffer at the hands of a lot of concern around the world, as the Aussie dollar is considered to be a proxy for many commodities.
If tariffs continue to be leveled against both China and the United States, it’s likely that it will disrupt some of the demand for commodities coming out of Australian, and I think that we will continue to see a lot of fear around the world when it comes to demand for these products. I think that given enough time, we are more than likely going to continue to see rally sold, unless of course we could break above the uptrend line. The market breaking above the uptrend line would be a very good sign for buyers, but at this point I don’t think it’s likely to happen in the short term. There will obviously be volatility in these markets overall, and we have sold off rather drastically in the short term, so this may be more of a grind over the next couple of days.
AUD/USD Video 18.06.18
This article was originally posted on FX Empire
More From FXEMPIRE:
- GBP/JPY Weekly Price Forecast – British pound noisy against Japanese yen as trade fears dominate
- AUD/USD Weekly Price Forecast – Aussie struggles during the week
- NZD/USD Weekly Price Forecast – New Zealand dollar breaks down during the week
- EUR/USD Weekly Price Forecast – Euro falls during week testing support
- FTSE 100 Weekly Price Forecast – FTSE 100 to show signs of weakness
- Alt Coins Weekly Price Forecast – more softness in the alt coin markets