AUD/USD Price Forecast – Australian dollar trying to recover on Thursday

The Australian dollar continues to drift lower over the longer-term, but it looks as if we may be a bit oversold in the short term. Because of this, we could see a little bit of a rally and clear the 0.71 handle, but I think we are still going to go looking towards the 0.70 level underneath, as it is a major level on the longer-term charts. I think at this point; the market more than likely will find a massive amount of buying pressure in that region. If we were to break down below the 0.70 level, that would be an extraordinarily negative sign.

I have no interest in buying the Australian dollar, and quite frankly if I’m going to short the US dollar, it’s going to be against other currencies. I believe that the Aussie will continue to be very noisy, and of course if you are going to trade this currency you need to pay attention to headlines coming out of both Washington DC and Beijing. The Sino-American trade war is going to continue to be one of the major features of how this pair trades. Eventually, I would anticipate that we will rally but I think we see far too many people out there looking towards the 0.70 level to think that we won’t at least make a serious attempt to get there. On the upside, I believe the 0.72 level is massive resistance.

AUD/USD Video 05.10.18