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AUD/USD Price Forecast – Aussie dollar rallies to kick off week

The Australian dollar rallied significantly during the trading session on Monday, breaking through little bits of resistance as I noted on Friday. With this being the case, it looks like we are going to fulfill the move to the major resistance just above.
Christopher Lewis
AUD/USD daily chart, June 04, 2019

The Australian dollar has rallied a bit during the trading session on Monday, breaking towards the 0.6950 level. I believe that there is significant resistance in the form of the 0.70 level, so quite frankly I don’t have any interest in trying to short this market until we get closer. I don’t necessarily think that this is a market that should be bought, just that we can probably short from higher areas. We are currently sitting in a major consolidation area, so with that in mind it’s likely that we will see a lot of back-and-forth.

AUD/USD Video 04.06.19

With that being said, I believe that the market will probably continue to bounce between the 0.70 level in the 0.68 level underneath, at least until we get some type of resolution to the US/China trade situation, be it good or bad. Obviously, the Australian dollar is highly sensitive to the Chinese situation, so although the RBA is expected to cut rates, that’s probably secondary compared to everything that’s going on between the United States and China.

With that being the case, the question is whether or not we can break out of this range? I don’t think we will, at least not in the short term. That doesn’t mean that there won’t be nice buying and selling opportunities on the outer edges of the range, but you will need to be patient in order to take these trades. Look for signs of exhaustion closer to the 0.70 level and short accordingly.

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