AUD/USD Price Forecast – Australian dollar bounces slightly on Tuesday

The Australian dollar has rallied a bit during the trading session on Tuesday but remains underneath the major resistance at the 0.73 handle, an area that has been important more than once, so it makes sense that we could break above it. We did recently break above a downtrend line though, and ultimately that is a bullish sign. However, I think at this point this market is focusing on the potential of thawing of trade relations between the United States and China. I think we are of far cry from getting some type of deal, so I think that rallies at this point will probably still be sold.

AUD/USD Video 14.11.18

The 0.70 level underneath is massive support, and I think that a break down below there would be rather difficult, reaching down to the 0.68 handle. The alternate scenario of course is that we break above the 0.73 handle, but I think at this point it’s going to be very difficult to make that move, and even if we do I think there’s even more resistance above at the 0.75 handle. We are most decidedly being held hostage to the US/China situation, which at this point has no momentum going forward. Yes, the leaders are meeting in Argentina, but that’s a far cry from some type of agreement. I believe that there will still be a bit of a weight on this market going into the next several weeks.