AUD/USD Price Forecast – Australian dollar continues to grind sideways

The Australian dollar has gone sideways overall, as we continue to see a lot of questions about the Sino-American trade relations, and of course whether or not there is going to be enough global growth. Beyond that, the United States is raising interest rates, which of course makes the greenback attractive. I think at this point it’s likely that we will see this market continue to struggle overall, and therefore I do think that a break down is coming. The 50 day EMA, pictured in red on the chart, has shown a definitive negative trend, and I think that will continue to attract a lot of selling pressure as well. Once we break down below the 0.70 level, we could go down to the 0.68 handle next. I think at this point, most technical driven traders are looking for that level, and at that point we could reevaluate the entire situation. Rallies at this point will probably be selling opportunities near the 0.7150 level.

AUD/USD Video 30.10.18

If we did break above that level, then we could go to the 0.72 handle, but it seems unlikely that we will be able to sustain that type of rally in this present environment. However, if we get good news coming out of the Sino-American relations, then things could change. Until then, I’m very leery of the Aussie dollar because of its high leverage to the mainland economy in China.