AUD/USD Price Forecast – Australian dollar sits at fair value

The Australian dollar is essentially trading at fair value from what I see. The 0.68 level underneath is massive support, while the 0.70 level is massive resistance. That being said, we are right in the middle of that range and it makes sense that the market is a point ready to make a decision one direction or the other. Beyond that, keep in mind that we are heading into the summer trading season, which tends to be very range bound to say the least. Because of this pair will be almost impossible to trade for anything more than a quick scalp.

AUD/USD Video 31.05.19

Headlines from Washington and Beijing will continue to cause major problems and headaches for the Australian dollar, so to be honest this is one of my least favorite major pairs to trade right now. If I had place to trade right now, I suspect that we to rally premier towards the 0.70 level, but I would only put a very small position on in that scenario. If we break down below the 0.6880 level, a move to the 0.68 level is probably much more confidence inducing, but just barely so.

If you are looking to trade the Australian dollar, it’s probably better trade it against other currencies such as the New Zealand dollar or maybe Swiss franc. That being said, if we get some type of resolution to the US/China trade situation, this pair will to trade up in the air.

Please let us know what you think in the comments below