AUD/USD Price Forecast – Australian dollar falls but shows resiliency
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The Australian dollar has fallen early during the day on Tuesday, slicing through the 0.72 level in a bit of a “risk off” move. However, the US traders look as if they are willing to pick up the Australian dollar at these low levels, so I believe that if we can recover the 0.72 handle, it may be time to start buying again. Otherwise, we should find plenty of support below at the 0.7150 level, an area that has been supportive in the past. Remember that the Australian dollar is highly sensitive to China and all things involving the United States/China trade relations, so headlines could come into the mix.
Ultimately, if we were to break down significantly, meaning below the 0.7150 level, then I think we go looking towards the 0.70 level below which of course is much more important from not only a psychological standpoint, but from a structural standpoint as well. Ultimately, the Australian dollar has proven itself to be somewhat resilient considering that it hasn’t collapsed completely and what has been a long string of negative headlines involving the Sino-American relations. At this point, I think the negative headlines are having less of an effect, but at the end of the day they are still negative and therefore influence the overall attitude of trading. It’s going to be much easier for this market to fall than it is to rise, but sometimes that’s what trading is all about: taking the trade that isn’t the easiest to stomach.
AUD/USD Video 03.10.18
This article was originally posted on FX Empire