AUD/USD Price Forecast – Australian dollar falls on Friday

The Australian dollar has been very choppy over the last couple of days, so at this point it looks as if we are struggling to break out. That’s not a huge surprise, because quite frankly the Australian dollar is very sensitive to the situation in China, and by extension the trade war situation between the United States and China. As long as that is still a thing, I think the Australian dollar will have a bit of a weight around its neck. Because of this, I’m a bit suspicious of rallies, and I think those rallies will probably continue to be opportunities to start selling. The market participants continue to be concerned about headlines over the weekend, which quite frankly makes a lot of sense. If that’s the case, they will more than likely get out of the Aussie dollar ahead of that timeframe, because a headline could come out on Saturday that finds them down drastically on Monday.

I think a pullback is likely, and I think a break down below the 0.7150 level should send this market much lower. All things being equal though, I think this is all about the negotiations between the United States and China, so quite frankly it’s a difficult pair to trade right now but certainly it seems as it is much quicker to fall than it is to rise on news. The 0.70 level underneath is a major support level, and I think the market truly wants to try to test it longer term.

AUD/USD Video 17.09.18

This article was originally posted on FX Empire

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