AUD/USD Price Forecast – Australian Dollar Gapped Lower To Kick Off The Week

The Australian dollar has struggled quite a bit during the trading session on Monday, as the world goes into a major “risk off” mode as China is closing entire cities due to the coronavirus outbreak. Beyond that though, most economic figures had been dropping for a while and what is truly interesting is that if you look at the last couple of weeks in the Australian dollar, it moves right along with oil. This tells us that the Australian dollar is taking a beating more or less due to a global growth story, or perhaps a lack of global growth.

AUD/USD Video 28.01.20

Looking at this chart, there is a certain amount of support near the 0.6750 level, but if that level gets broken to the downside it’s likely that we go down to the 0.67 level to look for support. Quite frankly, this is an area that needs to hold for the Aussie dollar, because if we break down below there then we start to test to the area during the great financial crisis over a decade ago, making this a very historically cheap level from which to trade. That being said, we need to see some type of significant stability in order to get involved with the currency at these low levels. Quite frankly, if this is a market that is going to turn around for me historically cheap level, you should have plenty of time to start buying. As far as selling down here is concerned, there are far too many minor support levels between here and the 0.67 level to do so comfortably.

Please let us know what you think in the comments below