The Australian dollar has broken through major support at the 0.7150 level, and in a bit of a surprise on Monday was relatively quiet. It might be the market taking a breather from the bearish action, and perhaps trying to catch its breath. Ultimately, I think that this market is one that will struggle overall as there are plenty of reasons to think that the US/China trade spat isn’t going to get better anytime soon. If that’s going to be the case, then the Australian dollar is going to continue to suffer from external pressures.
Currently, I believe that the market may go looking towards the 0.70 level underneath, an area that of course has a lot of psychological importance attached to it. It’s been important on longer-term charts in the past, just as it has the psychological barrier aspect to it. I think at that point, the market will start to reevaluate several things, perhaps deciding whether we could go as low as 0.68 at that point.
Market participants will probably be best served to pay more attention to Sino-American relations than the gold market, although the two markets are so highly correlated. At this point, I think it’s all about the US dollar and its reaction to the trade spat between the Americans and the Chinese, so keep that in mind. If we can break above the 0.7150 level again, I think that the sellers may show up at the 0.72 level after that.
AUD/USD Video 11.09.18
This article was originally posted on FX Empire
More From FXEMPIRE:
- S&P 500 Price Forecast – stock markets volatile to open the week
- AUD/USD Forex Technical Analysis – Walking Down Weekly Gann Angles at .7124 and .7117
- Gold Price Forecast – Gold forming possible double bottom
- E-mini S&P 500 Index (ES) Futures Technical Analysis – First Weekly Chart Targets are 2860.25 and 2854.25
- Bitcoin Cash, Litecoin and Ripple Daily Analysis – 11/09/18
- Cardano’s ADA Technical Analysis – Hits Support Early – 11/09/18