AUD/USD Price Forecast – Australian dollar pressing resistance

The Australian dollar rallied significantly early on Thursday, as it was announced during Asian trading that the Chinese are coming to speak to the Americans about trade. That being the case, a put more of a “risk on” attitude into the markets, but oddly enough the pair stopped just below the major resistance barrier and went sideways. Because of this, I think there is still a lot of trepidation about owning the Aussie, and I think that the 0.73 level is major resistance. It would not surprise me at all to see this pair roll over from this area, and perhaps go looking towards the 0.72 handle. Otherwise, if we can break above the 0.7350 level, then the market probably goes looking towards the 0.75 level after that.

The one thing you can count on is a lot of noise, and of course Gold has its usual influence gold has been very bearish of late, and quite frankly there are far too many moving pieces out there to be comfortable owning the Australian dollar for a long amount of time, so I think this is a short-term pop more than anything else. I still believe that if we can’t recapture the 0.7350 level, we are more likely to see 0.70 tested than anything else over the next several months. This is an extremely headline driven currency market right now, and the AUD/USD pair will be no different than any other market.

AUD/USD Video 17.08.18