AUD/USD Price Forecast – Australian dollar continues to fail

The Australian dollar initially tried to rally during the trading session on Tuesday but then gave back quite a bit of the gains as we await the Federal Reserve interest rate decision. More importantly, we will be getting a significant statement after the fact that is going to give us an idea as to what the Federal Reserve may do in the future. If they are likely to continue to cut interest rates, it’s likely that we are going to continue to see the US dollar struggle against some other currencies. If that’s the case, it’s likely that the pair could turn around. However, it comes down to exactly how dovish they become.

AUD/USD Video 31.07.19

The 0.6850 level underneath should offer significant support, just as it has in the past. However, we have made a “lower low”, which of course is something to pay attention to. The market breaking down below there would then go looking towards the 0.68 level which is a major support level from the longer-term charts. That of course is an area that we will have to pay attention to for longer-term moves. All things being equal, I believe it should hold support based upon historical parameters, but if we break down below there it’s going to be “lights out for the Aussie.”

My base case scenario is to buy the pair if we can break above the candle stick from the Monday session, it would turn that into a broken inverted hammer, which has me aiming for at least the 0.6950 level, if not the 0.70 level after that.

Please let us know what you think in the comments below