AUD/USD Price Forecast – Aussie dollar gaps lower

The Australian dollar gapped lower to kick off the week on Monday, as we have seen a lot headlines crossing the wires that suggests perhaps the Americans and the Chinese are going to continue to struggle to come together. I think that’s probably going to be the theme going forward so that does put a bit of a lid on how far the Australian dollar can go.

AUD/USD Video 11.12.18

As you can see on the chart, we have broken above a significant downtrend line, and that of course is a bullish sign. We are in fact starting to see a little bit of support near the previous downtrend line, which is exactly what the buyers will wish to see. However, I think it is going to be difficult to go “all in” to the bullish side until we get some clarity when it comes to the Americans and the Chinese.

I think at this point, we are probably looking at the 0.70 level underneath is massive support, while the 0.75 level above is resistance. I think we will continue to go back and forth at present levels between now and the end of the year. I think the Australian dollar is going to be very difficult to trade for longer-term moves unless of course we get some type of major announcement coming from either Beijing or Washington, as traders are in a bit of a “wait-and-see” attitude when it comes to the US/Chinese trade negotiations and of course bickering through the news outlets.