AUD/USD Price Forecast – Aussie roles forward
There seems to be a bit of wishful thinking on the minds of traders when it comes to the US/China trade tariffs Pat. This is best summed up in the Australian dollar, which is highly sensitive to those intricacies. However, we trade the charts and not our thoughts, so I think that a break out above the current level should send this market looking towards the 0.7350 level, an area where I see a lot of resistance. In fact, that may only end up being a shorting opportunity above, but in the medium term it’s obvious that the buyers are still pushing their way higher. Historically speaking, the Australian dollar is of course cheap, and I would suspect that the market would probably rallied quite significantly if we start to see a warming of relations between the Americans and the Chinese.
I also recognize the 0.7150 level low as major support, and the gateway to the 0.70 level. If we can break above the 0.7350 level, that would be significant enough to start thinking about much higher levels over the longer-term. I think the next couple of days are going to be very important for this pair, but certainly looks as if the buyers are starting to have their way again. In a shift over the last couple of days, we are starting to see the US dollar get punished for trade tariffs as well, and that causes a bit of a crosswind here, as people are starting to bet that the situation will be reversed soon.
AUD/USD Video 20.09.18
This article was originally posted on FX Empire
