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AUD/USD Price Forecast – Australian dollar continues to grind

By:
Christopher Lewis
Updated: Aug 28, 2019, 16:07 UTC

The Australian dollar has gone sideways during the trading session on Wednesday, as we are continuing to bounce around in the same rectangle that we have been in for a couple of weeks. That being said though, it’s likely that we are going to grind a bit lower though based upon global risk appetite.

AUD/USD daily chart, August 29, 2019

The Australian dollar has gone back and forth during the trading session on Wednesday, as we are at the bottom of the rectangle. At this point, it looks like the market could break down towards the 0.67 handle, possibly even lower than that. The 0.68 level above is massive resistance, and it is going to be difficult to break as the negativity continues to be an issue out there. Beyond that, Australia has a high correlation to the Chinese economy, as the Australian supply so much of the Chinese raw materials necessary to run that economy. At this point, it looks as if the market will continue to find sellers on rallies, as the US/China trade relations souring.

AUD/USD Video 29.08.19

At this point, the 0.65 level would be the next target longer term. At this point, it is worth noting that it has been a massive support level. Overall, this is a market that continues to slump, and it looks like we are trying to build up the necessary momentum to truly break down. The alternate scenario of course is that we break out to the upside but we need to get past the 50 day EMA, which is painted in red on the chart. If we did that, then we start to look at every 50 pips as potential targets. All things being equal though, this is a market that will have a lot of risk appetite working against it.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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