Advertisement
Advertisement

AUD/USD Weekly Price Forecast – Aussie dollar runs into resistance

By:
Christopher Lewis
Updated: Nov 9, 2018, 18:58 UTC

The Australian dollar has tried to rally during the week but found enough resistance at the 0.7250 level to turn things around and form a bit of a shooting star. I think that the Australian dollar may have gotten ahead of itself after the bounce, which of course makes sense at the 0.70 level.

AUD/USD weekly chart, November 12, 2018

The Australian dollar rallied a bit during the week but ran into resistance at the 0.7250 level. Although it has been very impressive on the daily chart, the reality is that the rally hasn’t been much when put in context of the longer-term. I believe that we will revisit the 0.70 level eventually, but if we do break above the top of the candle stick for the week, namely the 0.73 level, then I think the market could rally towards the 0.75 handle. The market certainly has a lot of heaviness to it, especially considering that the Australian dollar is such a proxy for the Chinese economy.

AUD/USD Video 12.11.18

As long as there are troubles between the United States and China, the Australian dollar will struggle. This rally has been quite impressive from the short-term charts but when you look at the weekly chart, it’s not much. The 0.70 level of course will be stringent and it support, but if we break down below there I think that the market goes down to the 0.68 level next. Overall, I believe it’s only a matter of time before the Aussie falls not only because of the Sino-American relations problem, but also the Federal Reserve raising interest rates in the United States will continue to favor the US dollar overall. It will knock down the price of gold over the longer-term, which of course has an effect on the Aussie as well.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement