AUD/USD Price Forecast – Australian dollar testing resistance again

The Aussie dollar initially fell during trading on Friday but turned around to rally towards the psychologically and structurally important 0.70 level. That’s an area that more than likely will continue to cause resistance.
Christopher Lewis
AUD/USD daily chart, June 10, 2019

The Australian dollar initially dipped on Thursday but then turned around to reach towards the 0.70 level above. That’s an area that has been psychologically and structurally important for some time. Beyond that, we have the 50 day EMA flattening out at that level, so it’s very likely that we will continue to see a lot of resistance in this area. If we can break above that level significantly, it could open up the door to much higher pricing. However, I would need to see a daily close above the 0.7050 level to get overly bullish.

AUD/USD Video 10.06.19

Remember, the Australian dollar is highly sensitive to what’s going on between the United States and China, and quite frankly with all of that noise it’s difficult to imagine that we stay bullish without some type of pullback. Yes, we have seen a very bullish, but quite frankly it’s difficult to imagine people carrying a lot of risk across the weekend as there will almost always be some type of headline over the weekend that has traders concerned.

To the downside, the 0.69 level underneath is massive support so I think that the market will struggle to get below there. If it does, then it’s probably going to go looking towards the 0.68 level. All things being equal I think we continue to see a lot of noise, but overall we still haven’t broken out above the trading range that we have been in. This is a market that will continue to be very noisy over the next several weeks.

Please let us know what you think in the comments below

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