AUD/USD Price Forecast – Australian dollar continues to struggle

The Australian dollar try to rally initially during trading on Wednesday, but roll over again at the 0.71 level, an area that of course has a certain amount of psychological importance based upon it. I think that the market will continue to favor the downside overall in the Rally should continue to be sold as the Aussie is a proxy for China and the Asian trade situation. The Americans and the Chinese are nowhere near coming together on trade, so I think that rallies at this point will probably continue to be looked at with suspicion. That being the case, I like selling but I would rather see a pop higher as there is a lot of consolidation just underneath.

Looking at this chart, I recognize that the 0.7050 level is support, just as the 0.70 level under there is. If we break below that level, then it opens the door to the 0.68 handle, an area that has been important on longer-term charts, and I think would greatly influence what happens next. Above, I see the 0.7150 level as being extraordinarily resistive, and I think rallies to that area will offer nice selling opportunities with perhaps setting a stop just above the 0.72 handle as it is even more resistive. As long as there are negative headlines out there, this pair will struggle overall. Keep your position size small in this pair as you would any other one, because the markets are so extraordinarily volatile right now.

AUD/USD Video 25.10.18