AUD/USD Price Forecast – Aussie hits major resistance

The Australian dollar has run into a bit of resistance during trading on Friday, as the 0.73 level has offered a lot in the way of selling pressure. While the Sino-American relations continue to be a significant barrier, but recently I believe that traders are starting to try to look beyond that. At this point, if we drop from here it’s likely that the 0.73 level will continue to act as resistance, while I expect the 0.70 level underneath the act as support. We have broken through a downtrend line, which of course is a bullish sign but even if we are going to change the overall trend, it’s quite often the case that we will grind sideways initially. In other words, I can give you several reasons to believe why this market may continue to drop in the short term.

AUD/USD Video 12.11.18

As we head into the weekend, that may be another reason for the selling as traders don’t want to hold too much risk without having the ability to close out positions on a headline involving either the United States or China. The meeting in Argentina later this month will of course have a major influence on what traders expect in the trade war, and quite frankly I think they are getting a bit ahead of themselves to think that anything is going to happen. I anticipate that the market will sell off as soon as we see that nothing is going to come of that. Alternately, if we break above the 200 day EMA on the chart, then I think we could start to pick up major momentum.