AUD/USD Price Forecast – Australian dollar goes sideways against the US dollar after initially falling

Although I don’t like this market longer-term, I recognize that we are in an area that signals we may be getting a bit of a relief rally coming. I think we can go as high as 0.72 above, but quite frankly it’s going to take a bit of momentum to start picking up again. I suspect that the 0.72 level will be an area where a lot of sellers come back into the marketplace, and I think I will probably be one of them. Remember, the Australian dollar is highly leveraged to the Chinese economy, which is currently in the spat with the Americans. That continues to cause issues for the Australian dollar itself.

Beyond that, we have higher interest rates coming in the United States so that of course drives the value of the US dollar higher, meaning that we should continue to see the US dollar favored over the Australian dollar anyway. At this point, I think there’s a lot of questions being asked of the Aussie at the 0.71 figure, but we have settled on top of the previous resistance so I think we probably see a bit of a pop. This would be a short-term trade at best, and I would not look to get too cute with this currency pair right now. It’s much easier to sell in a downtrend than it is trying to pick up a bit of value.

AUD/USD Video 11.10.18