AUD/USD Price Forecast – Aussie continues to consolidate

As the Australian dollar is a bit of a proxy for China, it’s not a huge surprise that it has essentially chomped around and gone nowhere as of late considering that the United States and China are still in the midst of negotiating a potential trade resolution. Ultimately, if they get that deal done it’s very likely that the Australian dollar will be one of the first places we see money flow into as Australia is so highly levered to the Chinese economy and of course supply so much of the raw materials for the Chinese industrial machine.

AUD/USD Video 10.04.19

That being said, the technical levels remain the same, with the 0.70 level being a massive amount of support that market participants continue to take advantage of. I like buying dips in the Australian dollar and believe that we will continue to find buyers since you could see this support level all the way up to the monthly timeframe, something that doesn’t happen every day. Because of this, I buy short-term dips and collects small gains along the way until we can build up the necessary momentum or in this case probably the correct headlines to shoot to the upside.

I believe that the 0.7250 level will be massive resistance once we get there, but if we can break above that it would probably more or less confirm a major trend change, something that is long overdue for the Australian dollar. The Federal Reserve keeping a very loose monetary policy continues to help that situation as well.

Please let us know what you think in the comments below