AUD/USD Price Forecast – Australian Dollar Breaks Down

The Australian dollar initially tried to rally during the trading session on Tuesday but found resistance yet again as we turned around to break down below the 0.6750 level. This is an area that has been crucial more than once, so this looks like more of the same.
Christopher Lewis
AUD/USD daily chart, October 16, 2019

The Australian dollar has rallied initially during the trading session on Tuesday only to fail again. By doing so, the market looked bullish at first, but then turned around to break down and show signs of exhaustion. The 0.6750 level of course is an area that causes quite a bit of interest as it has been “fair value” for the market as we go back and forth. At this point in time, the 0.67 level is the beginning of massive support, while the 0.68 level has offered significant resistance.

AUD/USD Video 16.10.19

Looking at the choppiness of this market, it’s very likely that the Australian dollar continues to be very noisy and difficult to deal with, unless of course you are looking at a “reversion of the mean” on a short-term timeframe. Keep in mind that the pair is highly sensitive to the US/China trade situation, and that of course continues to be very noisy. With that being the case, it’s very unlikely that this pair can take off to the upside for anything along the lines of a significant trade without the trade deal coming back into vogue. Right now, it looks as if we are nowhere near getting some type of solution, so with that it is likely that we continue to see a lot of choppy action, without a whole lot conviction one way or another. With this, I feel that this pair is still only to be traded by those who can watch short-term charts.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.