AUD/USD Price Forecast – Australian dollar runs into major resistance

The Australian dollar went back and forth during the trading session on Wednesday, as the 0.70 level is crucial on longer-term charts. Ultimately, it’s likely that we will see a bit of pullback pressure in this area, because we have had a move towards the 50 day EMA, which is massive resistance. Above the 0.70 level IC about 50 pips worth of resistance, so I think it’s likely that we will turn over rather soon. However, if we were to break above the 0.7060 level, then we could probably continue to go higher.

AUD/USD Video 06.06.19

To the downside, I believe the 0.69 level will be supported, and that would be my target. This doesn’t mean that it’s going to be easy, and quite frankly I think that the choppiness will continue. Remember, the Australian dollar is highly susceptible to the US/China trade policy, but the other part of this equation is that the Federal Reserve has suggested that perhaps they would ease monetary policy if necessary. That could lead more money into the gold market, which of course helps the Aussie dollar in general.

I believe that this market is in the process of trying to bottom a bit, but that doesn’t mean that it’s going to be easy. John that, it’s going to take quite some time to form a longer-term bottom, and I suspect a lot of help from the US/China trade relations. If we can get good news out of there, that probably sends the Aussie dollar to the 0.72 level next.

Please let us know what you think in the comments below