AUD/USD Price Forecast – Australian dollar breaks down

The Australian dollar broke down significantly during the trading session on Friday, as the 0.7250 level has offered resistance. By forming a couple of shooting stars on the daily chart proceeding this candle, it gave you a bit of a “heads up” of what’s about to happen. Rallies at this point in time will more than likely be selling opportunities, as it looks like we are going to continue to trade based upon fear more than anything else.

AUD/USD Video 17.12.18

If we did turn around and break above the 0.7250 level, it will probably be based upon some type of good news coming out of the Sino-American trade relations, something that is probably asking a bit much. A break above that level could possibly send this market towards the 0.7350 level, or somewhere just below there near the 200 day exponential moving average. At this point, I think we will continue to see more of a grind lower, I don’t expect to see this market breaking down below the 0.70 level though. Overall, I think that the market continues to fade rallies on short-term charts, but ultimately I believe that we will be choppy more than anything else. After all, we are getting close to the end of the year so I don’t think a lot of money is willing to jump into the market. We have to favor the downside overall though, as shown by recent action.