AUD/USD Price Forecast – Australian dollar continues to look weak

The Australian dollar has gapped slightly during the trading session on Monday, but then went back and forth to show signs of exhaustion. At this point in time, it’s very likely that the pair will continue to sell rallies, and quite frankly there’s no reason for it not to. The Australian dollar is highly sensitive to the Asian economy and the most important Asian economy, China, continues to struggle a bit. Ultimately, this is a market that has not only had a parabolic move higher but has also rolled over completely as well. We are currently in the middle of a choppy and consolidative area, and that’s probably the way this is going to continue to be.

AUD/USD Video 24.09.19

https://www.youtube.com/watch?v=P0bnieudRck

If we were to break down below the 0.67 level, then the market could go down to the 0.65 handle. At this point, it’s very likely that the market will continue to face more of a “risk off” attitude, as there are a lot of concerns when it comes to the global economy and of course the US/China trade situation. Ultimately, this is a market that continues to focus on that trade situation, which of course continues to drag on. Beyond that, if there are concerns about global growth, a lot of commodity currencies take it on the chin, and of course the Australian dollar certainly will. Rallies at this point should continue to show signs of exhaustion above at the 50% Fibonacci retracement level, or perhaps the red 50 day EMA. To the downside, expect a lot of noise but rallies are still to be sold on short-term charts.

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