AUD/USD Price Forecast – Australian dollar has wild ride

The Australian dollar went back and forth during the trading session on Wednesday, in a bit of a sympathy play due to the Reserve Bank of New Zealand cutting interest rates overnight. That of course has people worried about global growth, because not only did the Kiwis do it, but the Indians and the Thai central banks did.
Christopher Lewis
AUD/USD daily chart, August 08, 2019

The Australian dollar has fallen rather hard during the trading session in reaction to the three separate Asian central banks cutting rates. This shows that there are a lot of concerns, especially when it comes to global growth. Asia is very sensitive to this, which has a negative effect on the Australian dollar as the Australians are major suppliers of commodities to countries such as China. As long as the trade war continues, it’s difficult to imagine a scenario where the Australian dollar shows a lot of strength.

AUD/USD Video 08.08.19

Looking at this chart, it’s likely that we continue to show signs of exhaustion on short-term rallies, and I do think that the 0.68 level which was massive support previously should now be technical resistance. This is a market that has been oversold for some time, but quite frankly it can’t seem to get out of its own way. If that’s going to be the case, then I fully anticipate that we go looking towards the 0.65 handle underneath which is a large, round, psychologically significant figure and of course one that will attract a lot of attention. It is structurally sound for several different reasons and therefore I think a lot of people will be attracted to that level. However, if we were to break above the 0.68 handle, then I think the 50 pip increments that I have marked on the chart are all areas you start to look for selling pressure to take advantage of.

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