AUD/USD Price Forecast – Australian dollar relatively flat to start weekThe Australian dollar with relatively flat during trading on Monday, which is actually a good sign considering how parish things have been as of late. However, we have recently broken through major support level, and that should not be forgotten, regardless of how quiet the day was.
The Australian dollar has broken through major support at the 0.7150 level, and in a bit of a surprise on Monday was relatively quiet. It might be the market taking a breather from the bearish action, and perhaps trying to catch its breath. Ultimately, I think that this market is one that will struggle overall as there are plenty of reasons to think that the US/China trade spat isn’t going to get better anytime soon. If that’s going to be the case, then the Australian dollar is going to continue to suffer from external pressures.
Currently, I believe that the market may go looking towards the 0.70 level underneath, an area that of course has a lot of psychological importance attached to it. It’s been important on longer-term charts in the past, just as it has the psychological barrier aspect to it. I think at that point, the market will start to reevaluate several things, perhaps deciding whether we could go as low as 0.68 at that point.
Market participants will probably be best served to pay more attention to Sino-American relations than the gold market, although the two markets are so highly correlated. At this point, I think it’s all about the US dollar and its reaction to the trade spat between the Americans and the Chinese, so keep that in mind. If we can break above the 0.7150 level again, I think that the sellers may show up at the 0.72 level after that.