AUD/USD Price Forecast – Australian Dollar Falls

The Australian dollar has initially tried to rally during the training session on Thursday, but then broke down significantly to slice through the bottom of the hammer from the previous session. That’s a very negative sign, because it turns this candlestick into a bit of a “hanging man”, although it’s not at the absolute top. It should also be noted that the previous candles from earlier in the week were a couple of shooting stars. That of course is a very negative sign as well, so ultimately it looks as if we are ready to continue the overall consolidation that has been forming.

AUD/USD Video 25.10.19

To the downside, this market could go as low as the 0.67 level before reaching the bottom of the rectangle that is trying to be foreign. Granted, the 50-day EMA is between here and there and could offer support, but quite frankly this is a market that is going to be at the mercy of the US/China trade situation which of course is continuing to be up in the air and therefore not decisive. At this point, the market struggles for clarity when it comes to the US/China trade situation which is essentially in limbo. As long as that’s going to be the case, Australia will suffer as it is such a main exporter to China. Ultimately, we will have to come to some type of resolution, but it looks as if we are months away from that happening, as a Chinese look ready to wait until the presidential election to resolve the issue.

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