AUD/USD Price Forecast – Aussie dollar show strength on Tuesday

The Australian dollar rallied rather significantly during the day on Tuesday, as interest rates were kept on hold. However, most of what has tied the hands of the RBA is global uncertainty, not necessarily the Australian economy itself. · FX Empire

Christopher Lewis

Updated Tue, Aug 7, 2018, 9:57 PM

The Australian dollar has skyrocketed during trading on Tuesday, reaching towards the 0.7450 level. This is an area that has been important previously, and I certainly think that it could extend to the 0.75 level above, as it is a large, round, psychologically significant figure. At this point, I believe that it’s going to be difficult to get above the 0.75 handle, but if we do clear that level, it’s likely that we will continue to go much higher, perhaps reaching towards the 0.7750 level next. Obviously, this should be seen right along with good news globally as the Australian dollar tends to be sensitive to risk appetite.

If we do pull back, I anticipate that the 0.74 level should be support, just as the 0.7350 level underneath will be. In fact, I believe that the 0.7350 level is massive support, based not only upon the recent action, but the longer-term charts like the weekly timeframe as well. I believe that we will continue to go back and forth, but ultimately the buyers should prevail. We need good news coming out of the trade war front or global growth in order to continue to go higher. Once we do, I think that the Australian dollar will reverse the entire trend and should continue to go much higher albeit in a very choppy manner as there are a lot of moving pieces out there that will continue to weigh upon not only the Australian dollar, but risk appetite financial assets as well.