AUD/USD Price Forecast – Aussie briefly breaks above resistance

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Updated: Aug 22, 2018, 05:35 UTC

The Australian dollar briefly broke above resistance at the 0.7350 level, but as the Americans are coming on board were starting to see this market roll over a bit. This is an area that should be a bit difficult to break above based upon previous action, as it was major support in the past.

The Australian dollar has broken above the 0.7350 level briefly during trading on Tuesday, mainly during the European session. However, we are starting to see the market roll over a bit, which would make sense considering how much resistance should be built in this area. I think at this point, we are more likely to see downward pressure than up, because quite frankly the pair is highly sensitive to the Sino-American trade talks, which of course haven’t accomplished anything quite yet.

Simultaneously, I’ve been watching the gold market roll over early during the US session as well, so this seems to be a coordinated move. If we make a fresh, new high, then fine, we could go to the 0.7450 level next but I think at this point even the bullies traders out there would recognize that perhaps we need a short-term pullback to build up the necessary momentum. With that in mind, I think that the Australian dollar will lose a bit of value in the short term, probably looking for the 0.73 level to offer some type of support. If it does not, then the market will more than likely continue to go lower and reach towards the 0.72 level after that. Regardless, keep in mind that this pair is highly sensitive to all things China, and right now things have calmed down a bit but at the end of the day we haven’t solved the issues.

AUD/USD Video 22.08.18

About the Author

Christopher Lewisauthor

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.