AUD/USD Price Forecast – Australian Dollar Breaks Down

Christopher Lewis
Updated: Oct 15, 2019, 15:51 UTC

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.

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.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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