AUD/USD Forecast – Aussie testing the downside

The Australian dollar fell on Monday to kick off the trading session, as well as the week. We reached down to the 0.72 level, an area that of course is a round figure, but is also the top of the impulsive candle that we had seen a couple of weeks ago. That significantly bullish candle stick is of course going to offer assert about of support in and of itself, and we did break through a downtrend line so the question now isn’t so much whether or not the market can continue to go higher or lower, but whether we are trying to break the trend, or are we trying to go sideways?

AUD/USD Video 13.11.18

The 0.70 level underneath is massive support, and I think it’s going to be difficult to break below there, at least in the short term. However, I think that later on this month when we have the meetings in Argentina, if nothing comes out of the Sino-American conversation, then this market will start to break down drastically. Overall, if we see a positive statement out of either the Americans are Chinese after that meeting, then the Australian dollar will probably rally rather quickly. The initial target to break out to the upside would be to go above the 0.73 level, and if that is cleared I think that the market could probably go as high as 0.75. However, a lot of times when we break through a downtrend line, we will go sideways to consolidate for a while so there is still the technical possibility of consolidation.