AUD/USD Price Forecast – Aussie dollar bumps up against resistance

The Australian dollar rallied initially during the day on Thursday but will run into quite a bit of resistance in the form of the 0.72 handle. That’s an area that has been very important more than once, and recently has been a major area of consolidation. This comes down to a lot of order flow, and that of course is something that we should be paying attention to. At this point, I think that the market is probably going to continue to see noisy trading in this area, so unless we get another catalyst to go higher, I fully expect this market to roll over again.

I don’t necessarily think that we are going to straight down, and it should be noted that CPI numbers came out lower than expected in America, because of this, I would anticipate a short-term rally followed by a lot of resistance. Ultimately, I think that it is only a matter of time before the sellers to come back though, because there are far too many issues out there. In the short term, we may have a quick pop, but longer-term I think there are far too many issues to worry about. Quite frankly, it would only take some type of negative comment out of either Washington or Beijing to send this market right back down. With that in mind, I would be a bit cautious about this pair for the longer-term.

AUD/USD Video 14.09.18