AUD/USD Price Forecast – Australian dollar looking for footing
The Australian dollar rallied slightly during the trading session on Wednesday, as we don’t really know what to do in this general vicinity. There seems to be a lot of back and forth between the Americans and the Chinese, but nothing market moving over the last several sessions.
The Australian dollar has been weak for some time now, reaching down into this major support level. This major support level is something that I have been watching for some time, and I believe there is a lot of order flow in noise in this 200 point range. The 0.68 level underneath should be massive support, so I think there are plenty of buyers down there. However, if we break down with a significant daily close underneath that level, it could be a signal that the Australian dollar is in real trouble. At that point, I think that it’s much easier to go to the 0.65 level.
AUD/USD Video 23.05.19
To the upside, I believe that the 0.70 level is going to be difficult to get above, but if we do this is a market that could really take off if we get good news coming out of the US/China trade situation. The RBA looks as if it could cut interest rates but has yet to do so and if there is a recovery in Sino-American relations, that would probably jolt the Australian economy higher.
In the meantime, I believe that this is a market that’s going to be difficult to trade because we are at such a major inflection point on longer-term charts. That being said, I have a couple of major levels that I’m watching on the chart and simply leaving it at that for the time being as there seems to be a lot of indecision out there.
Please let us know what you think in the comments below
