AUD/USD Price Forecast – Australian dollar running into resistanceThe Australian dollar initially fell during the trading session on Tuesday but bounced enough to reach towards the 0.7250 level. That’s an area that will cause a lot of resistance based upon the previous trading action, and then of course we have the 200 day EMA to worry about as well.
The Australian dollar initially fell on Tuesday but found enough buyers underneath to reach towards the 200 day EMA again. However, you can see that we did pull back from there and it now looks as if the level is going to trying to continue to hold as resistance. That’s not a huge surprise, we have a lot of noise going on in Australia right now, not only due to the Australian economy itself, but also the fact that we have the US/China trade situation going on which will have a massive influence on the Australia.
AUD/USD Video 06.02.19
Looking at this chart, I do think that we are waiting to see whether we can get good news out of those trade negotiations, and if we do it should send this market much higher. We have clearly made higher lows as of late, so therefore I don’t necessarily think that any selloff is going to be brutal, unless of course we get negativity coming from the US/China situation. If we do, then we could break back down towards the 0.70 level. The alternate scenario of course is that we break above the 200 day EMA significantly, which would be a longer-term bullish signal. However, I think that’s going to be difficult to achieve without good news coming from those trade talks or at least belief that something good is about to happen in that entire situation. I believe choppiness is probably the only thing you can count on.
Please let us know what you think in the comments below