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AUD/USD Price Forecast – Australian dollar continues to head into resistance

The Australian dollar has rallied during the trading session on Tuesday, to reach above the 0.6750 level before pulling back. By doing so, it shows that the market is ready to continue to struggle in this general vicinity.
Christopher Lewis
AUD/USD daily chart, October 09, 2019

With the Americans and the Chinese speaking during the week, there will be a lot of headline risk when it comes to the Australian dollar, as the market has clearly shown quite a bit of reactionary flavor to anything that throws a wrench into the US/China trade relations. As the Americans have blacklisted a handful of technology companies in China, it only ratchets up tensions ahead of the talks which more than likely will produce much. With that, it’s very likely that there will be a continued bearish pressure on the Aussie dollar going forward. Breaking above the recent highs would of course be a very bullish sign but right now it doesn’t look likely to happen.

AUD/USD Video 09.10.19

To the downside, the 0.6685 level has been supportive, and should continue to offer said support. Over the next couple of days, I would expect a lot of back-and-forth trading based upon headlines, and then possibly an impulsive move once we get some type of clarity. Regardless though, beyond the US/China situation there are a lot of concerns out there when it comes to global growth so I would still think that there is much more pressure to the downside in the Aussie than anything else. That being said, if we were to break above the 50 day EMA which is painted in red on the chart, that could be a buying opportunity but I would not expect much. Ultimately, the same trade is in effect here on this chart, simply fading short-term rallies and picking up 20 pips or so at a time.

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