AUD/USD Price Forecast – Australian dollar continues to baseThe Australian dollar has been a bit choppy during the session on Monday but continues to show us a significant base just below. Because of this, I think we could get increased buying pressure, but obviously we need good news to help push the Aussie higher.
The Australian dollar has gone sideways overall during the session on Monday so far, but it looks as if the 0.72 level is trying to offer support. If we were to break down below that level, I think that the 0.7150 level would be a likely candidate for significant support as well. In general, I believe that the Aussie is somewhat range bound, and that makes sense as we continue to await some type a breakthrough in the Sino-American relations which have soured as of late. If we can get some type a breakthrough in that scenario, we should see the Australian dollar rally rather significantly as it is so highly levered to the mainland economy. However, I’m not expecting that anytime soon so therefore I think that the recent action that we have seen will be indicative of what we can expect for several months.
If we do break down below the 0.7150 level, I think the next target would be 0.70 below, which should be crucial based upon longer-term charts. I believe that the market participants will continue to trade this pair more on emotion than anything else, so therefore it will be difficult to pick up any type of significant momentum. That’s not to say that we won’t have the occasional bounce or break down, but I’m not looking for major moves anytime soon in what looks to be a very static market that has a lot of external pressures upon it.