AUD/USD Price Forecast – Aussie dropped slightly on Friday

The Australian dollar has broken down slightly during the trading session on Friday, as we see a lot of US dollar strengthen overall. However, I think the market is essentially near the “fair value” on the chart, and the 200 day EMA above continues to offer resistance as well. Keep in mind that the Australian dollar is highly sensitive to the US/China trade relations, and that of course will continue to weigh upon the Aussie as there are a lot of negative signs out there when it comes to that situation.

AUD/USD Video 26.11.18

At this point, the 0.70 level could be the next target, which is massive support. I think at this point, it’s probably easier to fade rallies that show signs of exhaustion, and I think that until we can break above the 200 day EMA, that needs to be what you’re looking at. The 0.75 level above continues to be massive resistance, so I don’t think it’s very likely that we are going to go higher for any real length of time, unless of course we get some type of agreement between the Chinese and the Americans during the meeting of the G 20 economies in Argentina later this month. Ultimately, this is a market that I think will continue to stagnate and drift lower. The easy money to the downside has already been made though.