AUD/USD Price Forecast – Australian Dollar Continues To Grind Sideways

The Australian dollar has gone back and forth against the US dollar, as there is a lot of indecision when it comes to this market. This is because the US/China trade situation continues to be up in the air, as although it has been a little bit more amicable as a leak, the reality is that we are miles away from any true resolution to the scenario, so it’s very likely that the Australian dollar will struggle to hang on to gains for any significant amount of time. This doesn’t necessarily mean that we need to break apart, but it should keep things in perspective.

AUD/USD Video 29.10.19

On the chart, you can see that I have drawn a lavender rectangle. The rectangle identifies what I believe is the consolidation area that we are going to continue to be in. The 0.69 level should show signs of resistance, just as the 0.67 level underneath should be supported. With this, the market will continue to go back and forth based upon the most recent headlines and Tweets. In other words, the only way to play this market is from the technical side because chasing the latest headline is far too difficult. In this scenario, it makes sense that the pair would rally on signs of a conciliatory tone to the situation, while a ramping up of rhetoric will continue to drive this pair lower. In the meantime, this market simply bounces back and forth but does offer nice trading ranges to pad your account with.

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