AUD/USD Price Forecast – Australian dollar continues to struggle

The Australian dollar initially tried to rally during the trading session on Monday, bouncing from the 0.69 level. That’s an area that of course is a large, round, psychologically significant figure, and that of course attracts a lot of monetary flow.
Christopher Lewis
AUD/USD daily chart, July 30, 2019

The Australian dollar has tried to rally during the trading session on Monday but gave back most of the gains early in trading and now looks like it is going to make a serious play to break down below the 0.69 handle. If we do, then the next obvious target will be the 0.6850 level, which is where we had seen a rather significant bounce recently. However, what’s interesting about this candlestick is that if we can break above the top of it that would be a very bullish sign. After all, and inverted hammer that gets broken to the upside is a good sign, especially considering that it is at a “midcentury figure.” It is an oversold market, so that could be reason enough to have things turn around, albeit short term.

AUD/USD Video 30.07.19

If we were to break down below the 0.6850 level I think at that point were probably going to go looking towards the 0.68 level, which is obviously a significant big figure. Beyond that, it’s an area that has been the bottom of massive support on longer-term charts, so as I have been saying for months now, a breakdown below that level would be somewhat apocalyptic for the Aussie. I don’t know that we get down below that level, but it’s something to keep in the back of your mind.

All things being equal, at this point it looks like we will get a little bit of continuation to the downside before trying to find that stability that is so desperately needed. One thing that could help of course is the Federal Reserve this week if it looks ready to cut rates and more importantly, continue to do so going forward.

Please let us know what you think in the comments below

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