AUD/USD Price Forecast – Aussie somewhat sideways on Monday

The Australian dollar has gone sideways more than anything else during the day on Monday, as traders trying to suss out what is going on around the global markets. I believe that the market is likely to be very volatile, because we worry about tit-for-tat trade tariffs going on between the United States and China, which of course has a direct effect on Australia, as it is considered to be one of the largest supplier of hard commodities to the Chinese.

If we were to turn around and break above the 0.750 level, it’s likely that we would continue to rally from there, perhaps as high as the 0.77 handle. However, the market is most decidedly in a negative attitude, and it also could begin a “risk on” trade around the world, perhaps not only in this pair, but stock markets and of course Gold markets which tend to move very highly correlated to this currency pair.

If we continue to go lower, and I suspect that eventually the sellers will return, we will probably go looking towards the major support at the 0.7350 level. That’s an area that has been important more than once, so it’s likely that traders will react to it. If we were to break down below there, then it’s likely that we will go looking towards the 0.70 level under their, which of course has the psychological importance of being a large, round, whole number. I think volatility is the one thing you can count on.

AUD/USD Video 19.06.18