AUD/USD Price Forecast – Australian dollar drifts lower
The Australian dollar has drifted a bit lower during the trading session on Thursday, as we continue to worry about global trade and geopolitical issues. The Turkish lira rallied a bit during the day, giving a bit of a relief to the “risk off” move, but by the time the Americans came back on board it looked as if the knock on effect had already started to drift lower. The 0.73 level being broken in the Australian dollar is a significant turn of events, and I think it should be paid attention to as a sign that we are probably going to go lower, I suspect the 0.70 level will be targeted.
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At this point, I anticipate that we will continue to sell short-term rallies on signs of exhaustion, at least until we can break above the 0.73 level. I don’t think that happens in the short term though, but if it did that could send this market looking towards the 0.75 level above. Market participants will continue to bail on the Australian dollar at the first signs of trouble, as there is a lot of fear out there. I believe that will continue to be the case for the next couple of weeks at the very least, with not only the Turkish situation, but any headlines come out between president Trump and the Chinese. Expect a lot of volatility, but at this point I think it’s a much safer trade to try to short this pair and go with the overall trend as per usual.