AUD/USD Price Forecast – Australian dollar continues to look very negative

The Australian dollar continues to show signs of negativity, as we have broken significantly below the 0.6950 level. This is an area that has been choppy and been moved every time we get a 50 pip move. There’s a clear grid for this pair, so paying attention to that is probably the way to go. To the downside, the 0.6850 level is the beginning of what I considered to be the “floor” in the market that extends down to the 0.69 handle. To the upside, there is a major downtrend line that push this market back down.

AUD/USD Video 29.07.19

Recently, we have sliced through the 50 day EMA and that is a very negative sign. However, structurally speaking there is plenty of support underneath. I believe that pullbacks to lower levels that show signs of exhaustion should be a nice buying opportunity. At this point, I think that we are trying to form some type of bottoming pattern, but the fact that we are down here testing a swing low is a very bad look. If we were to turn around to the upside, then we could try to break out but what concerns me is that if we were to reach a bit lower, then it throws technical analysis out the window and just shows quite a bit of sloppy trading.

The Federal Reserve will be cutting rates, or at least the market expects that. If they are a bit more dovish than anticipated, then we could see a market turnaround, but quite frankly right now that is the only thing I think that could come in and pick this pair out.

Please let us know what you think in the comments below