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.

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