AUD/USD Price Forecast – Australian dollar sluggish to kick off week

The Australian dollar kicked off the week very positively, breaking towards the 0.73 level. However, by the time the Americans came on board it was already rolling over and showing signs of exhaustion above the 0.7250 level. Because of this, I think it’s only a matter of time before rallies offer selling opportunities, but it seems as if we are magnetically attracted to the 0.7250 level. That is essentially what I call “fair value” at the time, and it makes sense that we would hang out in this area. However, I think there is one major thing that people are paying attention to when it comes to this pair that will eventually move it rather drastically: the meeting between Donald Trump and Xi of China. That’ll be late in the week, into the weekend so I suspect that this pair might be a bit quiet. However, I favor the downside because of the lack of cooperation that we have seen so far.

AUD/USD Video 27.11.18

Ultimately, when I look at this pair I recognize that the 0.70 level is crucial, and if we were to break down below that level, then I think that the market would go to the 0.68 level. At this point, I think that the 0.75 level above is going to be far too resistive to break out above, so if we did clear that area would almost undoubtedly be because the Americans and the Chinese showed signs of conciliatory action. I think the market is far ahead of itself, and it’s only a matter of time before the sellers come back as not only do we have this situation, but we also have global concerns when it comes to growth.