During the week of 19 August 2018, we saw that Australian Dollar rallied initially but fell vigorously due to political uncertainty in Australia. As the situation has been solved, so has Australian Dollar recovered on Friday. Even with all the trouble, AUDUSD did not fall below the tail of the previous week’s hammer.
Fundamentals Analysis
After Fed Chair Powell speech on Friday, US Dollar weakened, Gold has shown signs of beginning to rally. This is bullish for the Australian Dollar. At this point, the tariff warn between USA and China could could make it a challenge for the Australian dollar to rally.
Trading Preference
For the coming week, the preference is to buy AUDUSD if it breaks above the top of the weekly candle – it could also coincide withe the pair breaking the down trendline shown on the chart.
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