AUD/USD Price Forecast – Australian dollar recovers slightly

The Australian dollar continues to suffer at the hands of a potential trade war, and of course headlines out there will continue to push this market around. The 0.73 level has been an area of selling pressure, and we are approaching it as I record this. I think that we will probably continue to  roll over from here, staying within the previous consolidation area. However, I think part of this might be short covering going into the weekend, because a good and positive headlines coming out of China or the United States involving the trade war could send this market straight up.

AUD/USD Video 19.11.18

If we do break above the 0.73 level, then the market will probably continue to try to go to the 0.75 level after that. That’s an area that’s going to cause a lot of resistance, and therefore I think some type of exhaustion will probably present itself that we can sell into even if we do get the break out. I fully believe that buying is not what we are going to be able to do with any type of confidence. Ultimately, I believe that the market will probably try to retest the 0.70 level, but obviously it’s going to take some type of negativity to enter the market yet again in order to cause that to happen. We are at extremely low levels, so the occasional bounce has made quite a bit of sense. I’m simply waiting for a shorting opportunity at this point.