AUD/USD Price Forecast – Australian dollar struggling at 200 day EMA

The Australian dollar rolled over slightly during the trading session on Monday, as the trade tensions between the United States and China only ratcheted up over the weekend, and that of course will have a heavy influence on what happens with the Australian dollar next. I think that the market will probably go looking towards the 0.7250 level, and then perhaps even the 0.72 level after that. However, if we were to turn around and continue to go higher, it would be based upon some type of headline coming out of either United States or China, perhaps offering some hope as to a thawing of the frosty trade relations. Quite frankly, I don’t see that anytime soon, so therefore I think that the market is ripe for a significant pullback.

AUD/USD Video 20.11.18

Even if we did break out to the upside, the 0.75 level is massive resistance as well, so I think any rally will probably be short-lived, and offer plenty of opportunity to sell this market. If we can break down below the 0.70 level, then we could go down to the 0.68 level after that. Market participants continue to look towards the safety of the US dollar and US treasuries in this scenario, and I think that continues. With the Chinese economy being in such dire straits right now, and of course the Australian economy showing signs of weakness, I just can’t get bullish of this pair anytime soon.