AUD/USD Price Forecast – Australian dollar breaks down

Australian dollar rallies during the early part of the session only to turn around and break down. At this point, the 0.68 level should continue to offer plenty of negativity, and therefore it’s likely that we should continue to see downward pressure.
Christopher Lewis
AUD/USD daily chart, August 15, 2019

The Australian dollar initially tried to rally during the trading session on Wednesday, but then broke down significantly to reach towards the bottom of the recent consolidation. That being said, it looks as if the Australian dollar is going to continue to reach down towards the bottom of the hammer that ended up forming during the previous week. Because of this, I think that we are going to see an attempt to break through there, and perhaps reaching towards the 0.65 handle underneath. This market of course is highly levered to the US/China trade situation, so therefore we need to keep in mind that as long as things aren’t going that well, we should continue to see selling pressure.

AUD/USD Video 15.08.19

US bond markets have been on fire as of late, as the demand for treasuries continues. At this point, it should continue to attract a lot of attention for the US dollar, so I think it’s only a matter time before money flows towards the greenback anyway. The 0.68 level was a major level, so the fact that we broke through there was of course a significant situation. Now we have seen that same level offer significant resistance, I believe it’s only a matter time before we break down significantly. Because of this, I have no interest in buying the Australian dollar, and I believe that the 50 day EMA above at the 0.69 level is even more resistive. The Aussie looks to be in serious trouble, and therefore it’s impossible to buy it.

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