AUD/USD Price Forecast – Australian dollar continues to run into resistance

The Australian dollar has tried to rally for quite some time, but as you can see the 0.7250 level continues offer a lot of resistance. It’s at that area that I think the sellers will continue to come in and punish the Aussie due to the problems we have with the US/Chinese trade relations. If we were to get a resolution to that situation, then I think we would see this market rally rather significantly, perhaps all the way to the 0.75 level. However, there is no true side of that right now, so I think that what we are looking at is a scenario where we will continue to see weakness in this market. In general, I believe that fading rallies will continue to work between now and the end of the year and let some type of major announcement comes out from that trade negotiation situation.

AUD/USD Video 14.12.18

At this point, I think that the market is going to remain very choppy and unfortunately trade upon headlines. I would not look at Australian figures for much guidance, because we have so much in the way of noise. Longer-term, it looks as if we are simply bouncing around between 0.70 on the bottom and 0.75 on the top. Currently, we are near “fair value” which always makes it a tough trade anyway.