AUD/USD Price Forecast – Australian Dollar Continues To Struggle

The Australian dollar has initially tried to rally during the trading session on Monday but failed to hang on to gains. The Americans were away as it was Presidents’ Day in the United States, but at the end of the day this is more of the same. It looks as if the Australian dollar is desperately trying to break down through support, but it should be noted that there is a massive amount of support down to 0.63. We are entering the consolidation phase from the financial crisis, so there will continue to be a lot of buyers underneath trying to pick up value in the Aussie. Keep in mind that the Australian dollar is highly sensitive to China itself, so that will be something to pay attention to as well.

AUD/USD Video 18.02.20

It’s very likely that the Chinese economy will continue to suffer at the hands of the coronavirus, but eventually we will turn around. As soon as that starts to show signs of stabilization, that’s when I anticipate that the Australian dollar will turn the corner. In the short term though, it still looks as if sellers are going to come in on small bounces. Ultimately, this is a short-term trading type of environment, but if the market was to get above the 0.6775 handle, then the buyers will probably continue to become a bit more aggressive. Until then though, I anticipate that this market will be very sluggish. Paying attention to the weekly candlesticks will be crucial, both of the last couple of weeks have shown signs of further downward pressure.