AUD/USD Price Forecast – Australian dollar falls during the trading session on WednesdayThe Australian dollar fell during the day on Wednesday as people are starting to question whether or not the US/Chinese trade war is going to get any better anytime soon. It looks as if the Australian dollar is going to remain very sensitive to the Sino-American relations, so pay attention to this pair and of course headlines involving both China and the United States.
The Australian dollar has fallen during trading on Wednesday, filling the gap to complete the move at the weekly open. At this point, I believe that there is support underneath though, especially near the 0.7250 level which has essentially been the pivot point for this pair as of late. We recently broken above a major downtrend line, so that of course is something to pay attention to as well. If we were to break down below the previous downtrend line, that would be very negative.
AUD/USD Video 06.12.18
If we do bounce before now and then, we could go to the 0.73, followed by the 0.75 level. I think at this point, breaking above that level then confirms a complete turnaround in the overall trend, and then the Australian dollar becomes a “buy-and-hold” currency. This almost has to be preceded by an agreement between the Americans and Chinese, which I don’t think it’s coming in the short term. Because of this, I expect a lot of choppiness but people are trying to place themselves ahead of a major move higher, as that could be explosive once it starts. The alternate scenario is that there is no agreement, and then we break down below the 0.70 level, which could send this market down to the 0.68 level. At this point, unfortunately for Australia most of what is moving this market is beyond its control.