AUD/USD Price Forecast – Australian dollar continues to struggle to keep gains

The Australian dollar rallied a bit during the trading session on Wednesday but gave back gains again as we got close to the 0.7250 level. This is an area that continues to be important based upon technical standing, and of course is the middle of the recent consolidation. Overall though, I think that this pair is probably going to move more upon the Sino-American relations than anything else, although I do believe that the Australian economy has its own issues, I believe that the pair is focusing more on the US/China situation than anything else. Remember, Australia is a major supplier of commodities to China, and that of course will influence the demand for the currency.

AUD/USD Video 13.12.18

Ultimately, the 200 day EMA above offers a significant amount of resistance, so even if we do rally I think there will be a shorting opportunity closer to it. I believe between now and the end of the year, this market is likely to slope, but I wouldn’t say drastically. I would not be surprised at all to see this market end up just slightly lower than where we are right now on New Year’s Day. If we do break above the 200 day EMA, the target would be the 0.75 level next as it is massive resistance. Otherwise, if we turn around and start falling significantly, we probably go down to the 0.70 level as it has offered so much in the way of support recently.