AUD/USD Price Forecast – Australian dollar proves resilient on Tuesday

After initially gapping lower to kick off the week, the Aussie dollar is starting to show signs of life again. I ultimately believe that this market will probably try to reach towards higher levels, most specifically the 0.7350 level, an area that has been massive resistance in the past. However, if we do continue to find selling pressure and break below the 0.7225 handle, then I think it opens the door to the 0.7150 level underneath. Quite frankly, this is completely driven by the situation between the Americans and the Chinese, which of course continues to deteriorate and will cause harm to the Australian economy before it’s all said and done. Australia is one of the largest providers of “stuff” to the Chinese, and if the Chinese are going to suffer some type of slow down, you can bet that it will also slow the Australian economy down.

At this point, I think this is going to be a volatile pair, but I would focus more on short-term charts than anything else. Quite frankly, nobody knows what’s going to happen next and a lot of scared money is in this pair right now from what I can see. Ultimately, this market may eventually find some type of serious direction but it clearly doesn’t have it right now. With that in mind, I’m looking to the daily charts for a little bit more clarity at the end of every session, but right now we simply just don’t have it. It does look resilient, but that can change with one errant comment from either Beijing or Washington.

AUD/USD Video 26.09.18