AUD/USD Price Forecast – Australian dollar falls toward support

The Aussie dollar fell a bit during the trading session, dipping below the 0.68 handle, an area that has previously been resistance, and now is being tested to see if it will in fact told.
Christopher Lewis
AUD/USD daily chart, September 20, 2019

The Australian dollar has fallen a bit during the trading session on Thursday to reach towards the 0.68 level. This of course is a negative sign, so it is possible that we see more of a “risk off” move coming out there, but the reality is that money seems to be flowing towards the United States in general so it makes sense that this pair continues to fall. Beyond that we also have the US/China trade situation, as that situation continues to cause issues as real progress seems to be allusive to say the least. Because of that, the market could very well reach towards the bottom again, at the 0.67 AUD level.

AUD/USD Video 20.09.19

If we do bounce from here, then we need to worry about the 0.69 level offering resistance, as it is the recent high that ended up forming quite a bit of resistance in the form of multiple shooting stars. That shows that there are a lot of sellers in that general vicinity, and that it should in fact offer quite a bit of noise. If we were to break above there, then the market would go looking towards the 0.70 level above to test what could be a significant barrier as well. All things being equal, this is a market that is going to continue to be very noisy, but still has a significant overhang as the Australian economy and perhaps even more importantly, the Asian economy continues to cause a lot of problems. If we did somehow break above the 0.70 level though, that obviously would change the entire outlook.

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