AUD/USD Price Forecast – Australian dollar continues to choppy action

The Australian dollar rallied a bit during the trading session on Friday but as you can see on the chart the 50% Fibonacci retracement level has acted as resistance a couple of times. With that, one thing worth paying attention to is a shooting star from the Thursday session which failed at the 0.69 level. That is an area that will attract a significant amount of interest as it is a large, round, psychologically significant figure. If we were to break above there then it opens up the door to the 0.70 level, so at this point it should be thought of as a bit of a trigger.

AUD/USD Video 16.09.19

Part of the reason this pair has done a little bit of rallying as of late is the US/China trade situation is on the surface getting a bit better. However, I would be the first to point out that we still haven’t been able to keep the gains. That’s very interesting, considering that the pair should in theory be going straight up in the air. However, we have seen so much in the way of disappointment when it comes to these trade negotiations that only so much can be read into a few consolatory gestures.

If we can break down below the 0.6850 level, then it opens up the door to the 0.68 handle after that. I believe at this point we will more than likely see a lot of choppiness going forward, with perhaps still an eye on the downward pressure. All things being equal, this is a market that has gotten a bit ahead of itself.

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