AUD/USD Price Forecast November 6

The Australian dollar was rather quiet during the trading session on Monday, as we have seen a bit of a barrier start to form between the 0.72 level that extends to the 0.7250 level. Ultimately, I think that if we break down below the bottom of the shooting star from Friday, it is technically a sell signal, and we should see this market drop down to the 0.71 handle. At this point, I believe that the Australian dollar is going to continue to suffer, because quite frankly the Sino-American relations haven’t gotten any better.

AUD/USD Video 06.11.18

Beyond that, there is a downtrend line that has influenced trading on Friday as well. At this point, I think it’s only a matter of time before the sellers get involved then we could see this market reach down towards the 0.70 level. After all, we’ve seen a lot of bearish pressure longer-term, and it makes sense as we continue to see a deterioration in global trade. Remember, Australia is highly leveraged to the Chinese economy so I don’t think we are looking at a scenario in which you can buy the Aussie quite yet. Quite frankly, we would need to see a complete turnaround in the Chinese/American trade situation for the Aussie to truly pick up major momentum to the upside. I believe that is a long way away, so quite frankly I’m a seller and not a buyer.