AUD/USD Price Forecast – Australian dollar slams into resistance

The Australian dollar rallied a bit during the trading session on Wednesday, slamming into the crucial 0.68 level, an area that has caused resistance several times before. With this, the question then becomes whether or not we can break out?
Christopher Lewis
AUD/USD daily chart, August 22, 2019

The Australian dollar has rallied during early trading on Wednesday, slamming into the 0.68 level. That’s an area that has been significant resistance as of late, and now we have to wonder what the Federal Reserve is going to do next. That could possibly be what determines this next move, as we have been consolidating for some time. Keep in mind that we have seen a lot of negativity as of late, and this makes quite a bit of sense considering that the Australian dollar is highly levered to the US/China trade talks. Ultimately, I think that this market probably continues to find reasons to fall, because unless of course we find some type of major breakthrough in the US/China talks, it’s hard to imagine a scenario that Australian dollar rallies again.

AUD/USD Video 22.08.19

Even if we did break out above the recent resistance, the 0.69 level should be resistance, just as the red 50 day EMA should be resistance as well. In other words, I have no interest in buying this market until the Americans and the Chinese can come to terms, and I suspect it’s probably going to be several months before that happens. To the downside, I think that the market is probably going to go down towards the bottom of the hammer from a couple of weeks ago, and then perhaps even down to the 0.65 level. All things being equal, I remain negative and recognize that although things could get rather noisy, I still favor the downside as the trend has been so ensconced.

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

Top Promotions

Top Brokers

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.