AUD/USD Price Forecast – Australian dollar continues to drift lower

The Australian dollar has chop around during the trading session on Friday, as we continue to see a lot of concerns when it comes to the US/China trade relations. Granted, the last couple of days have seen a bit of softening when it comes to the rhetoric between the Americans and the Chinese, but we’ve seen this movie before and it never ends well. It’s only a matter of time before somebody pushes somebody else’s buttons, and the situation deteriorates.

AUD/USD Video 02.09.19

At this point in time it’s likely that rallies will continue to be faded, so I believe that short-term pops higher in the Australian dollar offer a value trade for the world when it comes to picking up the greenback. The Australian dollar is miles away from picking up strength due to the trend, the US/China trade situation, and then of course the Australian housing market which is nothing but negative. To the downside, the market looks very likely to reach down towards the 0.65 handle, which is a large, round, psychologically significant figure and of course a massive support level based upon the monthly charts.

To the upside, we would need to break above the 0.6825 handle to see any signs of life, but at this point I think even if we do break above that level, we are going to see plenty of resistance every 50 pips or so, and the downtrend will be intact at least until we get a US/China trade deal which is nowhere near happening.

Please let us know what you think in the comments below