AUD/USD Price Forecast – Australian dollar hanging by a thread

The Aussie dollar is struggling at this point, hanging about the vital 0.69 handle. That’s an area where I anticipate seeing a lot of support, and quite frankly break down below there could open up the door to 0.68 underneath, which is massive support. A breakdown below that level of the door to the 0.68 handle. At this point in time we are essentially stuck in the middle of the larger consolidation area, that extends all the way to the 0.70 level. As the negotiations flounder, it’s difficult to imagine a scenario in which the Australian dollar strengthens drastically.

AUD/USD Video 28.05.19

If we do get some type of good news out of those negotiations, then it’s very likely that the Australian dollar will be the main beneficiary. If we do not, then I think it’s only a matter of time before people start pricing in that rate cut that the RBA is starting to talk about. Remember, Australia has a housing bubble that is trying to deflate, and that of course will have a major influence on where we go next. Beyond that, we also have the US dollar which has been strengthening, so that’s another reason to think that this pair is probably going to continue to struggle.

If we can break above the 0.70 level it would be a major turnaround and that would of course be good sign for the Aussie dollar. A break above there could open the door to the 0.72 handle.

Please let us know what you think in the comments below