AUD/USD Price Forecast – Australian dollar falls to start the weekThe Australian dollar fell to start the week on Monday, reaching down towards the 0.74 level before bouncing slightly. This is an area that of course has been support recently, but it also has been resistance in the past. Because of this, and the fact that the longer-term consolidation dictates that it is only a minor level, we could continue to fall from here.
The Australian dollar has crashed towards the 0.74 level during the Monday session, an area that has been important more than once. Ultimately, I think that if we can break down below the 0.74 level, the market can continue to go towards the 0.7350 region. I don’t think we’re going to see some type of major break down, just that we obviously have a significant amount of resistance just above, so it makes sense that we would pull back a little bit. The Australian dollar of course is highly leveraged to Asia, so the trade war talks and concerns of course will have a massive influence on where we go from here.
Short-term rallies will probably be selling opportunities, especially near the 0.7450 level. If we were to break above the 0.7450 level, then of course we have a major barrier above at the 0.75 handle that could be very difficult to take out in the short term. All that being said, I do believe that the 0.7325 level will continue to offer significant support though, so I believe we are simply going back and forth yet again, and at this point I think you are probably better served playing the overall range than anything else. Short-term trading continues to be the norm in this pair, longer-term traders are probably waiting for some type of impulsive breakout or break down to take advantage of.