AUD/USD Price Forecast – Australian dollar rebounds

The Australian dollar broke down initially during the trading session on Tuesday, as we continue to press below the 0.67 level. However, we found enough buyers underneath the turn things around and ended up forming a significant hammer. At this point, it’s very likely that we could go towards the 0.68 level, which is the massive resistance above and essentially the “ceiling” in the market. The 0.6833 level is the top of that resistance barrier, so I think signs of exhaustion probably are going to be jumped on. After all, the US dollar has been favored as we have a lot of concerns out there, and beyond that we also have concerns when it comes to global growth.

AUD/USD Video 04.09.19

With the US/China trade relations souring even further, it’s difficult to imagine a scenario where the Australian dollar strengthens, as things just aren’t looking good. Ultimately, I believe that we continue to see a major “risk off” scenario, and therefore it’s difficult to get excited about trying to buy “risk on” currency such as the Aussie. With that, I am looking to fade rallies going forward and of course a break down below the recent lows. At that point we will be targeting the 0.65 handle, which is a major support level on the longer-term charts, even going all the way up to the monthly timeframe. Ultimately though, I think it’s too juicy of a target for the sellers to ignore.

Please let us know what you think in the comments below