AUD/USD Price Forecast – Australian dollar rallies again on Thursday

The Australian dollar has rallied a bit during the trading session on Thursday again, reaching towards the 0.7350 level. The market has recently broken through the downtrend line, so it looks as if we are going to try to go towards the 0.75 level if we can get some type of positive momentum going. The G 20 meeting over the weekend is going to have a massive amount of influence on where the Aussie goes next, because the Americans and Chinese should be talking. If there’s some type of good announcement coming out of that meeting, then I think that the Australian dollar will rally rather significantly as Australia is so highly leveraged to the Chinese economy. Alternately, if we see some kind of negative response or statement by either the Chinese or the Americans, that could send this pair right back down.

AUD/USD Video 30.11.18

I suspect that a lot of short covering has been going on over the last couple of days as traders try to step out of the way of potential trouble. If that’s the case and we get negativity out of that meeting, that will send this pair right back down to the 0.70 level. Keep in mind that the 0.75 level above is massive resistance, so I think it’s going to take a while to break above there, and in fact the only thing I think that will cause the Aussie to break through there easily will be a financial agreement is made.