AUD/USD Price Forecast – Australian dollar rolls over at major figure

The Australian dollar tried to rally during the trading session on Friday again but continues to find sellers near the 0.68 handle. As we continue to consolidate, the market is trying to figure out whether or not we are going to be able to continue to see risk.
Christopher Lewis
AUD/USD daily chart, August 19, 2019

The Australian dollar has rallied a bit during the trading session initially on Friday but then found too much in the way of resistance at the 0.68 level to continue going higher. Ultimately I think that this market is going to continue to chop around but one thing that you can make out if you look closely is that the highs are getting lower, and the lows are also doing the same. We are starting to slump a bit to the downside so I think that we will probably continue to grind to the downside and reach towards the bottom of the hammer from the previous week.

AUD/USD Video 19.08.19

A break down below there opens up the possibility of a move down to the 0.65 handle, which of course is a large, round, psychologically significant figure and it is of course an area that has offered support multiple times in the past and can be seen on the monthly chart. To the upside, we would need to see a daily close above the 0.68 level to start looking towards the 0.68 handle above which is even more resistive as it will have exhaustion come into play and the 50 day EMA as well.

The US/China trade situation continues to deteriorate, so I don’t see how the Australian dollar can continue to go higher. Any rallies at this point should be selling opportunities, the question is whether or not we get more room to move or if we simply grind to the downside?

Please let us know what you think in the comments below

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