AUD/USD Price Forecast – Australian dollar hits resistance

The Australian dollar has rallied a bit during the trading session on Friday, breaking above the 0.70 level, which is a large, round, psychologically significant figure. However, we have turned around to break down below there and form a less than attractive candle stick. This is a marketplace that has a lot of resistance just above it as well, so I think it’s not until we break above the 0.7050 level that I can be convinced that we should be going long.

AUD/USD Video 15.07.19

The 50 day EMA is just below the current candle stick, and therefore offers a bit of support. I think that we are going to continue to see a lot of back and forth choppiness, as the Australian dollar/US dollar pair has a lot of moving pieces. We have the US/China trade relations which are less than spectacular, and that of course is negative for the Australian dollar as Australia provides so much in the way of raw materials for the Chinese economy. On the other hand, the Federal Reserve is going to be cutting interest rates, so that does help lift the pair, or at least make the US dollar drifted a bit lower.

All things being equal, it’s likely that the market will continue to be very choppy and noisy in general. With that, it’s going to be difficult to put a lot of money to work in one direction, but a move above the 0.7050 level would allow this market to spring to life and go much higher. To the downside, it looks as if every 50 pips continues to show support.

Please let us know what you think in the comments below