AUDUSD Bear Pressure Builds Up On 0.7367 Level

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AUDUSD. With AUDUSD continuing to hold on to its downside pressure following its price failure on Thursday, further bearishness is expected in the days ahead. On the downside, support resides at the 0.7350 level where a breach will aim at the 0.7300 level. Below that level will set the stage for a run at the 0.7250 level with a cut through here targeting further downside pressure towards the 0.7200 level. On the upside, resistance lies at the 0.7450 level. A cut through here will turn attention to the 0.7500 level and then the 0.7550 level where a violation will set the stage for a retarget of the 0.7600 level. On the whole, AUDUSD remains biased to the downside on price weakness.

  

 

AUD/USD forecast for the week of June 13, 2016


The AUD/USD pair broke higher during the course of the week, clearing the 0.74 level. However, we found enough resistance near the 0.75 level to turn the market back around and form a nice-looking shooting star. The shooting star is exactly where you would want to see it if you are a seller, and as a result I find this very suspicious. I believe that sellers will more than likely be interested in this market if we can break down below the bottom the shooting star for this past week, which would show quite a bit of weakness in that scenario.

Pay attention to the gold markets, they tend to have a pretty significant effect on the Australian dollar, and it should be noted that the gold markets went higher on Friday as the Australian dollar when lower. In other words, this situation will have to sort itself out and eventually they should move in a congruent fashion as they typically do.

The US dollar has been falling rather significantly lately due to the fact that the Federal Reserve seems less likely to have as many interest-rate hikes as once thought. However, the Reserve Bank of Australia recently cut interest rates, so that of course ways upon the Australian dollar itself. With this, if we can break down below the bottom of the shooting star for the week, I believe the market will reach down to the 0.7150 level next. Alternately, a break above the top of the shooting star would be a very bullish sign and the market would more than likely try to reach towards the 0.78 handle above. It would be a very choppy move, but it seems like that’s what we would be aiming for.

If we can break down below the 0.7150 level, that would open the gates too much lower pricing when it comes to the Australian dollar, so that would be something to pay attention to if it happens, but at this point in time it looks like a small move lower is probably the most likely scenario.


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