AUD/USD Price Forecast – Australian dollar fails to keep gains

The Australian dollar has struggled to keep gains initially found at the beginning of the day on Monday, as the 0.7075 level has offered a bit too much in the way of resistance. Beyond that, we also have the negativity surrounding the Sino-American trade relations, and therefore I think we continue to see the Aussie struggle for the foreseeable future. Given enough time, I do believe that the Australian dollar will probably grind its way down to the 0.70 level, and then possibly the 0.68 level after that.

If we do break above the 0.71 handle, then it’s likely that we could go much higher. I think that ultimately we will do that, but I don’t think it’s going to be in the short term. I believe that rallies continue to offer selling opportunities, on signs of exhaustion of course as the Australian dollar has been so reliably bearish recently. Pay attention to gold, it can also lead the way as well, and with the rising interest rates in the United States that’s yet another reason to think that perhaps this market will continue to struggle to keep gains. Quite frankly, the Australian dollar has the misfortune of being a bit of a proxy for China, which these days isn’t exactly a great thing. Someday, and hopefully not too far into the future, we will get some type of resolution between the Americans and the Chinese, and at that point the Australian dollar will be a screaming buy.

AUD/USD Video 09.10.18