AUD/USD Price Forecast – Australian dollar continues to chop

With the Americans meeting the Chinese for trade talks this week, it makes sense that the Australian dollar doesn’t know what to do yet. Ultimately, we are getting close to a very major support level underneath so I do think that eventually we will get a major pop and trend change in this pair. That’s especially true considering that the level has shown itself to be important on both the weekly and the monthly charts. We have bounced drastically from the 0.68 level underneath, which I think is the bottom of a major support zone that starts at the 0.70 level.

AUD/USD Video 30.01.19

Adding more fuel to the fire is the fact that the Federal Reserve is looking likely to continue to be soft on the interest rate hikes, and if we are actually done with those interest rate hikes, that could send the Australian dollar skyrocketing. Beyond that, gold markets will be lifted as well, so I think that given enough time if we get the Federal Reserve to stop raising interest rates, the US and China to get on better footing when it comes to trade relations, and perhaps more of a “risk on” attitude overall, then this pair will turn around and changed its trend longer-term. I do believe that longer-term we are looking at the US dollar losing ground against many of the world’s currencies, I believe that the choppiness is simply the market trying to build up a bit of a base to change things longer-term.