AUD/USD
The Australian dollar fell during most of the week but turned around to show signs of support. At this point, the market looks as if it is ready to continue to consolidate overall, reaching towards the 0.69 level. It’s very likely that the market may rally a bit during the week, but I would not expect much. However, we could see significant volatility due to the US/China trade talks, which kick off on Wednesday. Obviously, headlines could come into play.
GBP/USD
The British pound has gone back and forth quite a bit during the trading week, dancing around the 1.2350 level. Ultimately, it looks as if the market is ready to make a move, but obviously there’s much more resistance above at the 1.25 level to keep this market down than there is support underneath. A breakdown below the bottom of the weekly candle stick could send this market looking towards the 1.20 level. I would anticipate a lot of choppy back and forth trading over the next week or so.
Ultimately, this is a market that will be very difficult to trade, as there will be headline risk in a major way, and of course the never-ending drama that seems to be Brexit. At this point, short-term back and forth range bound trading is probably the most likely situation.
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