AUD/USD Price Forecast – the Australian dollar slams around at Lowe’s

The Australian dollar has been very noisy during the trading session on Friday, initially drifting lower, but turning around to show signs of life. The 0.70 level underneath will continue to be very interesting, and quite frankly a target. The 0.71 level above should be massive resistance. · FX Empire

Christopher Lewis

Updated Fri, Oct 5, 2018, 10:30 PM

The Australian dollar went back and forth during the trading session on Friday, as the jobs number came out and we got past that risk event. Overall, the market shows the 0.71 level above as resistance, and the 0.70 level underneath. If we were to break down below the 0.70 level, the market could break down rather significantly and go to much lower levels. Otherwise, if we turn around and break above the 0.71 handle, I think that begins a corrective phase where we will eventually see a lot of selling above. The 0.72 level beyond that should be massive resistance and I would not be surprised to see this market fail at that area even if we do rally. The question then becomes what happens if we break down below the 0.70 level?

If that happens, I think the market probably goes down to the 0.68 handle, which is a major round figure and of course an area where we have seen a lot of noise out in the past. Overall though, I think that the market continues to see a lot of volatility in this pair, as it is so highly levered to the Chinese situation. The United States and China are nowhere near trying to fix things in their trade war disputes, and that will continue to be negative news working against the value of the Aussie as Australia supplies so much of the raw materials to the mainland.