AUD/USD Price Forecast – Australian dollar falls

The Australian dollar fell a bit during the trading session on Tuesday, reaching down to the 0.7250 level, an area that has been important more than once. I think that if we can break down below the bottom of the candle stick for the trading session on Tuesday, then the market will probably go looking towards the 0.72 level. Ultimately, I believe that rallies continues to be sold, because quite frankly there is no resolution coming between the Chinese and the Americans anytime soon.

AUD/USD Video 21.11.18

I believe in selling rallies on the first hints of exhaustion, and I believe that the 200 day EMA will continue to work against this currency pair in a structural point of view as well. If we did break above the 200 day EMA on a daily close, then we may be looking for a move towards the 0.75 level, which should be relatively resistive as well as it is a large, round, psychologically significant number, and an area where we’ve seen some action recently as well.

I believe the 0.70 level underneath will be the target, and I also believe that it will be a very interesting support level. I think if we can break down through that level, then the market probably goes looking towards the 0.68 level after that, which was massive support in the past. Quite frankly, the Australian dollar is so highly levered to the Chinese economy that it’s almost impossible for it to rally in the current trade spat that we find ourselves in between the Americans and the Chinese.