AUD/USD Price Forecast – Australian dollar bounces again

The Australian dollar rallied a bit during the trading session on Thursday, reaching closer to the 0.70 level again. This is an area that will more than likely be rather resistive, so a pullback from here would not be a huge surprise. The 50 day EMA is crossing the 0.70 level as well, so it’s likely that we see pressure in that area. However, if we break above the 0.70 level, then the market probably tries to take out the 0.7060 level. A move above there opens up the door to another couple of handles to the upside.

AUD/USD Video 07.06.19

On the other side of the coin, we could roll over from here and go back towards the 0.69 level. Quite frankly that wouldn’t surprise me at all but I also recognize that the Aussie is at least trying to make a stand, and perhaps trying to form a bit of a base for a complete trend change. However, as long as the Americans and the Chinese continue to bicker, it’s going to be difficult for the Aussie to strengthen for a longer-term move. Remember, the Australian dollar is a bit of a proxy for China, as the Australian’s provide so much to the Chinese industrial machine as far as hard commodities are concerned.

All things being equal, we also have the jobs number coming out on Friday and that of course will move the greenback overall, as well as risk sentiment. I have given you a handful of levels to pay attention to, but I believe the one thing you can probably take away from this scenario is that trading remains tight.

Please let us know what you think in the comments below