AUD/USD Price Forecast – Australian Dollar Continues To Consolidate

The Aussie dollar has rallied a bit during the trading session on Tuesday, reaching towards the 61.8% Fibonacci retracement level yet again. However, as we have seen before, there is a certain amount of bearish pressure in that region.
Christopher Lewis
AUD/USD daily chart, November 06, 2019

The Australian dollar has rallied a bit during the trading session, reaching towards the 61.8% Fibonacci retracement level. By pulling back from that level it suggests that we are quite ready to go higher yet. The 200 day EMA is starting to come closer to trading right now, and that of course will attract a lot of attention. Ultimately, this is a market that continues to see a lot of volatility based upon the US/China trade situation, which of course is a fluid and messy process. Looking at this chart, it does look as if we have been trying to build up a bit of a base but quite frankly at this point there are a lot of headwinds to any type of longer-term “buy-and-hold” type of situation.

AUD/USD Video 06.11.19

If we were to break down below the 0.6875 level, it’s very likely that the market will drop another 25 pips. However, if we were to close on a daily chart above the 200 day EMA, it’s very likely that the market would start to reach towards the 0.71 handle above which is essentially the 100% Fibonacci retracement level. That of course will attract a lot of attention as well. Ultimately, the Australian dollar is very tight and difficult to trade right now, because quite frankly there’s no clear directionality as the RBA statement mentioned that external pressures, and other words the US/China trade situation, continues to be the biggest problem that Australia faces. In other words, it’s out of their hands and at the mercy of what happens in Washington and Beijing.

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.