AUD/USD Price Forecast – Australian dollar continues to hover around major level

The Australian dollar went back and forth during the trading session on Friday in early trading again, as we continue to hang about the 0.70 level. This is the beginning of massive support that extends all the way down to the 0.68 level. Because of this, the market is more likely to go higher than lower, or at least is more likely to have more momentum to the upside. That doesn’t mean that we rally, just that it’s much easier to buy this than sell it.

AUD/USD Video 13.05.19

Keep in mind that the Australian dollar is highly sensitive to the Chinese economy, and of course by extension the US/China talks. If we do get a good resolution to the talks, or at least something a relatively positive, then the Australian dollar should gain. After all, the Australian supply China with many of its hard resources, and therefore it is a proxy for currency traders. In other words, with good news this market goes higher. However, I think that there is so much support underneath that it’s going to be very difficult to sell this pair. That’s not to say that he can’t fall, nor to say that we can’t break down below the crucial 0.68 level. It’s just a matter of relative strength and market flow. It’s going to be difficult to break this area down, but a rally is a much more clear affair. Quite frankly, if the US dollar strengthens, I would be selling other currencies against it. If we get a good result to the talks, Australia will be one of the first places money flows to.

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