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AUD/USD Price Forecast – Australian dollar falls over

The Australian dollar finally rolled over a bit during the trading session on Tuesday, after forming several shooting stars over the last week or so. Because of this, it looks as if the Aussie could be facing renewed pressure.
Christopher Lewis
AUD/USD daily chart, September 18, 2019

The Australian dollar had formed a quite a few different shooting stars over the last week or so, so once we finally break down on Tuesday it should not have been a huge surprise. Now that the market is below the 50 day EMA, it’s also likely that we will continue to see sellers on these short-term rallies. Regardless, the one thing that you should keep in mind is that the Australian dollar is very choppy and will more than likely continue to be so.

AUD/USD Video 18.09.19

Unfortunately for the Australian dollar, it’s highly levered to the Chinese economy which of course is being held hostage by the US/China trade talks, which although a little bit better than in the past, still leaves a lot to be desired. With that in mind it makes sense that rallies continue to be sold on short-term bounces, because quite frankly you can’t trust these bounces as shown over the last several months, if not years. The 0.68 level underneath would of course be a target, as it was previous resistance based upon the consolidation that we had just broken out of. The question now is whether or not the 0.68 level will hold, because it could be the beginning of a move higher but if we break down through the 0.68 level that would be a very negative sign. Quite frankly, this is probably going to come down to the idea of the trade talks either working or not, and unfortunately that is going to be very difficult to trade off of.

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