AUD/USD Price Forecast – Australian dollar hits resistance

The Australian dollar rallied significantly during the trading session on Wednesday, reaching towards the 0.70 level which is an area that we have seen the lot of selling it. At this point, signs of exhaustion should be jumped on as the Aussie has to deal with the idea of interest rates coming from the RBA, and of course problems with the US/China trade situation. Quite frankly, this is a marketplace that will struggle for clarity, because the Federal Reserve is also looking to cut as well. That being said, the US/China trade situation I believe is going to be the larger driver of the currency markets in this particular case.

AUD/USD Video 27.06.19

After the weekend disappointment that is sure to come, I suspect that we will probably roll over. However, if we were to break above the 0.7050 level, that could send this market much higher but I don’t think it’s going to happen in the short term. Ultimately, this market looks like it is going to continue to respect every 50 pips level, as it has recently. That being said, we are a bit expensive at this point so I think it’s only a matter of time before we roll over.

Ultimately, I don’t have any interest in buying this market until we get through the US/China situation, and with the G 20 going on this weekend, it’s very likely that the next major move will probably happen Monday, so between now and then it would not surprise me at all to see a slow and gentle drift lower as traders to take off risk.

Please let us know what you think in the comments below