AUD/USD Price Forecast – Aussie presses significant resistance

The Australian dollar has continued to show bullish pressure during the trading session on Tuesday, reaching towards the 0.7350 level, an area that matters of course. If we can break above that level, then the market should be free to go to the 0.75 handle. On pullbacks, I think that there are buyers out there willing to jump into this market, and I think that they will continue to look at the Australian dollar as a way to express a “risk on” attitude. I think that the market will continue to react to the Sino-American conversation as per usual, as the Australian economy is so sensitive to what’s going on in China.

I believe that the 0.73 level will bring in a certain amount of support, and that it’s likely we will eventually find a reason to bounce either from there, or possibly the 0.72 level. I think the “floor” is the 0.72 level, so if we were to break down below that level it would be an extraordinarily negative sign. Keep in mind that if we do get some type of major negative headline, that could turn this rally around as it will be somewhat fragile due to the erratic nature of the markets, and of course all of the fear that had been part of the market due to the tariffs and the tit-for-tat conversation between the Americans and the Chinese. Pay attention to gold, it will have its say so as well.

AUD/USD Video 29.08.18