AUD/USD Price Forecast – Australian dollar jittery to kick off week

The Australian dollar pulled back a little bit to kick off the week, but overall we are starting to try and find a bit of support near the 0.71 handle. Longer-term, this pair is held hostage to the Sino-American relations, which of course have been poor to say the least. I think at this point, we are probably looking at significant support in this range, but if we were to break down below the 0.7080 level, then I think we will probably wind to the downside, may be as low as the 0.7050 level in the short term, followed by the 0.70 level after that.

Rallies are a bit suspicious at this point, and I think that there is a lot of resistance at the 0.7150 level. If we broke above there, then I think the market would probably go looking towards the next logical area, the 0.72 handle as it is not only a round figure, but it’s an area where we have seen a lot of selling in the past. A break above there could change a lot of things going forward. However, I think that we continue to see market selling every time there is a bit of a rally. After all, being so highly levered to the Chinese economy isn’t necessarily a good thing right now as far as the Aussie is concerned, and the underlying fundamentals of the Australian economy aren’t exactly great.

AUD/USD Video 23.10.18