The AUD/USD daily chart shows a broader downward trend and an upward correction lasting for several days. Very clear resistance is at the psychological and respected level of 0.70, which the price seems to be heading for. The recent weakening of the US currency seems to be the result of a slightly crazy policy of President Trump. He unexpectedly opened a new front in the trade war by imposing duties on goods from Mexico. What is more, there are announcements of withdrawing India and Turkey from the list of privileged countries in trade. The media in the USA have also speculated about tariffs on Australia. It seems that the markets may perceive such behaviour as a threat of an economic slowdown, which will also affect the USA. Consequently, the pricing of a scenario of cutting interest rates in the near future will start. It seems, therefore, that the upward trend will be maintained for the time being and the price may reach a key resistance.

AUDUSD Daily

In our Facebook group, which you can join anytime: https://www.facebook.com/groups/328412937935363/ you will find 5 simple strategies on which my trading is based. There, every day  we post fresh analyses of currency pairs and commodities

 

Leave us a comment!

Ransquawk