AUD/USD Price Forecast – Australian dollar runs into resistance

The Australian dollar tried to rally during the trading session on Friday, but gave back the gains as we continue to see a lot of concern when it comes to the US/China situation, as it doesn’t seem like it’s going to get any better. That being the case, it’s very likely that the market is going to continue to see a lot of volatility when it comes to the Aussie as it is so highly levered to Chinese growth and of course construction.

AUD/USD Video 24.06.19

Ultimately, the market should continue to see a lot of noise in his and quite frankly I think we are going to stay in this range that I have marked on the chart but we obviously have more of a downward bias as of late. After all, we did make a “lower low.” That being said I believe that the 0.68 level underneath is massive support, so a break down below there would probably coincide with a souring of relations between the United States and China. Ultimately, that move would probably coincide with something bad coming out of the G 20 meeting between President Trump and Xi.

If that happens, then we could look at a market going down to the 0.65 level which is a large, round, psychologically significant number, and at this point I would expect that level to offer support. Overall, I anticipate that we stay within the blue box I have on the chart but that is the alternate scenario.

Please let us know what you think in the comments below