AUD/USD Price Forecast – Australian dollar continues to consolidate

The Australian dollar has initially fallen during the trading session on Tuesday, but then turned around to rally to show signs of life again. There is a continued consolidation area, as the 0.68 level has offered significant resistance, extending towards the 0.6825 handle. As long as we stay underneath that level, I don’t have any interest in trying to fight towards the upside. After all, the Australian dollar is without a doubt a proxy for the US/China situation, which of course hasn’t really gotten any better anytime recently. With that, it’s only a matter of time before the sellers come back in. Ultimately, this is a market that will continue to be very noisy due to the fact that we just don’t know which direction to go these days.

AUD/USD Video 28.08.19

To the upside, the 50 day EMA will be the “ceiling” from what we can see, and then we can look at the 0.6750 level as an area that offers a bit of support. I think that breaking through there probably opens the door down to the 0.67 handle, and then perhaps even lower from there. At this point, the market would probably go down to the 0.65 handle, but it’s going to take some type of shock to make that happen. I think it happens eventually, but in the meantime I simply look to fade short-term rallies for small gains, taking what the market is going to give us. This is a market that just has no reason to celebrate anytime soon.

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