AUD/USD Price Forecast – Australian Dollar Reaching Towards Significant Resistance

Australian dollar traders were bullish during the early part of Friday, as we continue to see the Australian dollar grind a bit higher. That being said though, we are heading towards an area that has caused resistance recently.
Christopher Lewis
AUD/USD daily chart, October 21, 2019

The Australian dollar has rallied a bit during the trading session on Friday, as we start to approach the 50% Fibonacci retracement level, an area that has seen resistance previously, and as a result it’s likely to see more again. Heading into the weekend, there are a lot of moving pieces out there that could come into play, and therefore it’ll be interesting to see how this plays out at the beginning of next week. Ultimately, if the 0.69 level gets broken then it’s very likely that the next thing that people will pay attention to will be the 200 day EMA. It currently sits at the 0.6950 level, so paying attention to that level will be crucial.

AUD/USD Video 21.10.19

I’m looking for a fairly exhaustive candle to start selling, but the question now is whether or not it is at the 0.69 level or the 200 day EMA. After all, it’s a major couple of levels that the markets will be paying attention to as the trend has been most certainly negative for some time, and therefore that has to be taken into account. Beyond that, the US/China trade situation continues to be a complete mess, so that will work against the value of the Aussie over the longer-term as well. All things being equal, I am looking for a selling opportunity but don’t necessarily see it right now. I will use daily closes to make my next decision, so patients will be the order of the day. Going into the weekend, almost anything can happen so the Aussie is at one of my currencies I like to hold.

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
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.
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.