AUD/USD Price Forecast – Australian dollar slumps on Tuesday

The Australian dollar has drifted a bit lower again during the day on Tuesday, reaching towards the 0.7050 level, which looks to be very important based upon a recent bounce. However, we have made a complete round-trip so far, and that of course shows a certain amount of weakness. At this point, we could then reached towards the 0.70 level underneath, which has a certain amount of psychological importance to it. That’s an area that will of course cause a lot of attention as it is a large come around, psychologically significant figure.

If we break down below the 0.70 level, then the market would probably go looking towards the 0.68 handle after that, which has been important more than once. I think that more than likely we will continue to see a lot of bearish pressure to this market, as so much uncertainty is out there. I think it is going to be sometime before the US/Chinese relations get fixed, so at this point I think the Australian dollar will continue to be one that’s easier to sell than to own. It’s going to take a significant amount of bullish pressure to turn this market around, and of course it’s going to take a complete turnaround in the attitudes of both the US and Chinese leaders. At this point, it looks very unlikely to happen, so again I think this is a market that makes more sense to sell than anything else at this juncture. However, you may wish to see a bounce before putting money to work.

AUD/USD Video 24.10.18