AUD/USD Price Forecast – Australian dollar rallies into resistance

The Australian dollar rallied a bit during the trading session on Friday, breaking above the 0.6750 level. However, there is a significant amount of resistance that extends above there, so it’s probably only a matter of time before the sellers step back in.
Christopher Lewis
AUD/USD daily chart, October 07, 2019

The Australian dollar has rallied a bit during the trading session on Friday, breaking above the 0.6750 level. At this point, we are starting to reach into a significant amount of resistance, reaching towards the 0.68 level at the very least. The 50 day EMA is starting to drift lower as well, and therefore it’s likely that we could see sellers come back in based upon the overall downtrend and of course the economic conditions globally. At this point, the Australian dollar has been dancing around this area, and as we are reaching towards the top of it, it’s very likely that sellers will come back in.

AUD/USD Video 07.10.19

The 0.67 level underneath should be support, so at this point it’s likely that the market will continue to find buyers there, but if we were to break down below the Wednesday candle stick, that could unleash the Aussie to reach down towards the 0.65 handle. To the upside, the 0.69 level above should be thought of as a “ceiling” at this point. This is a market that shows plenty of volatility, but it seems as if the market will continue to be choppy to say the least. At this point, I believe that the 0.68 level will bring in sellers and we will simply continue what we have seen for some time. The one thing that does help lift the Australian dollar is gold, but quite frankly the risk appetite just isn’t that strong out there for anything Asia related, which has a massive influence on the Aussie.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US