AUD/USD Price Forecast – Australian Dollar Continues Choppy Behavior

The Australian dollar initially tried to rally a bit during the session on Monday, but then rolled over to test the support level near the 0.6775 level early and North American trading. This is a pair that unfortunately has a lot of external noise attached to it, not the least of which would be the US/China trade war. As those headlines continue to conflict each other, there is a lot of confusion as to where we are going next. If that’s going to be the case, that is very obvious that the Australian dollar will be difficult to deal with as it is so highly sensitive to the Chinese situation, and this is the biggest problem here.

AUD/USD Video 26.11.19

The 0.67 level underneath was massive support a couple of times recently, and I think it is essentially acting as a “floor” in the market. This doesn’t mean that the market is going to continue to be supportive there, but it certainly looks as it is a major level. If we were to break down below it, that would be very negative for the Australian dollar going forward, just as a bounce from there should solidified just how important it is.

Unfortunately, this is going to be a very headline driven pair so quite frankly analysis is difficult to come by unless you break it down to its most basic tenets: support and resistance. Simply put, if we break above resistance at the 0.6825 handle, we are likely to go towards the 0.69 level. If we break down below the 0.6775 handle, we are very likely to go towards the 0.67 handle. The reason isn’t as important, and quite frankly almost impossible to follow at this point.

Please let us know what you think in the comments below