AUD/USD Price Forecast – Australian dollar continues to hang around low levels

The Australian dollar bounced a bit during the trading session on Wednesday, as a bit of a relief rally started. The 0.70 level is offering significant support, but I think it is only a matter time before we break down below it with the type of negativity that we see. Ultimately, rallies could be faded, and that is probably my go to trade here. The 0.7250 level above is massive resistance, and I would be very surprised to see if the market break above there. Beyond that, the 200 day EMA is just above the 0.7250 level, so I think there are a multitude of reasons to think that the sellers will come back. If we did break above the 200 day EMA, then the market could change attitudes but I think we would need some type of good economic news out there to make that happen.

AUD/USD Video 27.12.18

This pair is also going to be sensitive to the US/China trade relations, which of course are on thin ice at the moment. I believe in selling rallies at the first hint of exhaustion, it has been the trade that has worked intraday for some time. I would not look for major moves though, and it’s possible that we can’t make a break out or a break down between now and New Year’s Day because liquidity will be thin and of course a lot of traders will be putting much money to work. That being said, even if we do rally a bit buying is all but impossible. It’s only going to take one bad headline to send this pair back down.