AUD/USD Price Forecast – Australian dollar bounces for Wednesday session

The Australian dollar rallied a bit during the trading session on Wednesday, breaking above the 0.7250 level during the day. We used the 0.72 level as support, as we have seen more than once. However, I think at this point the best way to look at this market is that it is comfortable around the 0.7250 level. We simply go back and forth, and that suggests that we should be looking at this from a back-and-forth type of situation.

AUD/USD Video 22.11.18

Keep in mind that the Australian dollar is highly sensitive to gold and of course the global trade situation between the United States and China, which of course seems to be getting worse by the day. Because of this, I still favor the downside longer-term, and I also recognize that the 200 day EMA just above will cause a lot of attention to be paid to this market as well. The 0.70 level underneath is a major support level, and I think at this point if we were to break down below there we could probably go down to the 0.68 level. Ultimately, this is a market that the 0.75 level above is the ceiling currently, so I’d be very surprised if we did manage to break above there, which would almost have to coincide with something going on between the Americans and Chinese as far as cooperation is concerned. We seem to be light years away from that though, so I think it’s only a matter time before we fall.