AUD/USD Price Forecast – Australian dollar pulls back after initially rallying on Thursday

The Australian dollar initially took off to the upside during the trading session on Thursday but could not break out above the 0.7150 level, as we continue to grind overall. However, the market looks as if it is trying to grind to the upside, but obviously fighting the overall trend. The market continues to be very skittish, and of course risk on/risk off events continue to push the Australian dollar around. With that, keep in mind that the Sino-American trade relations of course have a massive influence on where this pair goes, as Australia is a major supplier to the Chinese economy for raw materials.

Looking at the chart, I think the 0.71 level could very well be supportive, and with that being the case I like the idea of looking for support in that area. However, if we break down below the 0.71 handle, then I think the market breaks down to the low again, somewhere near the 0.7050 level. If we do rally from here, I think the 0.72 level will be far too resistive, and that we will almost certainly see exhaustion there that we can start selling again. Keep your position size small, the markets are far too erratic to trust anything that’s going on right now, especially considering we are moving essentially on tweets at this point, and of course headlines as the bots continue to read comments on the Internet for trade ideas.

AUD/USD Video 19.10.18

This article was originally posted on FX Empire

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