AUD/USD Price Forecast – Australian dollar volatile for Monday

The Australian dollar as I suggested had initially broke down rather significantly during trading on Monday, but at this point we have rallied quite significantly. There were some headlines coming out of the United States suggesting that the Chinese had called and asked for a resumption of the talks. At this point though, the Chinese have not confirmed that call, and it now looks as if there is a lot of confusion when it comes to where we are in the trade negotiations. I suspect we are in any closer to a resolution then we have been for some time.

AUD/USD Video 27.08.19

That being said, I would fully anticipate that the Australian dollar will roll over again, but it isn’t quite ready to break down and I get that. I suspect that the 0.68 level will be massive resistance, and I do think that there will be plenty of sellers between here and there. If we were to see a significant turnaround during the day, I think we will probably go looking towards the 0.67 level again. The alternate scenario of course would be a breakout to the upside but I’m not counting that to be the case right now. Having said that, if we break above the 0.6833 handle, then it’s likely that we could go looking towards the 50 day EMA above, which obviously will cause a bit of technical resistance as well. I have no interest in trying to buy the Aussie dollar, at least not until the United States and China come to terms.

Please let us know what you think in the comments below