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AUD/USD Price Forecast – Australian dollar falls on Thursday

By:
Christopher Lewis
Updated: Jan 24, 2019, 17:18 UTC

The Australian dollar initially tried to rally during the trading session on Thursday, breaking above the 50 day EMA before rolling over in breaking below the 0.71 handle at one point. This is a market that has been rolling over, and it looks like we are ready to continue to do more.

AUD/USD daily chart, January 25, 2019

The Australian dollar initially tried to rally during the trading session on Thursday, and even pierced the 50 day EMA. By doing so, we rolled over and broke down below the 0.71 level during the day, showing signs of further weakness. However we have bounced just a little bit but I think that we will continue to reach towards lower levels, near the 0.70 level. That is the beginning of major support that extends down to the 0.68 handle, which is a longer-term support level that I think will end up holding. However, if we break down below the 0.68 level, the market could break down rather significantly as it would be a major break down of support on the weekly and monthly timeframe.

AUD/USD Video 25.01.19

The Australian dollar is of course highly levered to the Chinese economy and of course the US/China trade situation. Ultimately, I think that the deal gets signed longer-term, and then eventually we will see the Australian dollar gain drastically from that as it is essentially the one thing that Australian dollar traders seem to be paying attention to. Granted, the Australian economy isn’t running that hot, but this of course could be tied right back to the Chinese. We have fallen so far in this pair though that I think it’s difficult to start shorting here. On the upside, I see the 0.7250 level as massive resistance, and of course the 200 day EMA just above there offering the same.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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