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AUD/USD Price Forecast – Aussie dollar gaps lower

The Australian dollar gaps slightly lower during the trading session on Monday, but by the time the Americans came on board we had already seen that gap filled. The question now is how do we react to the Sino-American relations?

The Australian dollar gapped lower to kick off the week on Monday, as we have seen a lot headlines crossing the wires that suggests perhaps the Americans and the Chinese are going to continue to struggle to come together. I think that’s probably going to be the theme going forward so that does put a bit of a lid on how far the Australian dollar can go.

AUD/USD Video 11.12.18

As you can see on the chart, we have broken above a significant downtrend line, and that of course is a bullish sign. We are in fact starting to see a little bit of support near the previous downtrend line, which is exactly what the buyers will wish to see. However, I think it is going to be difficult to go “all in” to the bullish side until we get some clarity when it comes to the Americans and the Chinese.

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I think at this point, we are probably looking at the 0.70 level underneath is massive support, while the 0.75 level above is resistance. I think we will continue to go back and forth at present levels between now and the end of the year. I think the Australian dollar is going to be very difficult to trade for longer-term moves unless of course we get some type of major announcement coming from either Beijing or Washington, as traders are in a bit of a “wait-and-see” attitude when it comes to the US/Chinese trade negotiations and of course bickering through the news outlets.

This article was originally posted on FX Empire

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