AUD/USD Price Forecast – Australian Dollar Testing Top Of Rectangle

The Australian dollar has gone back and forth during the trading session on Wednesday as we await the FOMC. That being said though, the market has carved out a strong rectangle that continues to be a bit of a guideline for where the market will travel. At this point, the market is trying to grind its way towards the top and through the resistance, and it could be said that we have made a “higher low” recently, so it does suggest that perhaps the market might be able to break out. This will come down to whether or not the Federal Reserve juices the market enough with a dovish statement.

AUD/USD Video 31.10.19

Recently, we have seen a little bit of a conciliatory tone to the US/China trade situation, which does give the Australian dollar a bit of strength, as Australia is a major exporter of raw materials to the Chinese economy, as the construction and manufacturing sector relies on hard materials. At this point, if the Chinese economy can get the boost of a better trade situation with the United States, that should continue to benefit the Aussie dollar. Concurrently, the market has been oversold from a longer-term standpoint and it is at a historically low level.

This doesn’t mean that the market is suddenly going to explode to the upside, but it does suggest that if we can clear the 0.69 level on a daily close, that could be the signal that the market is going to go looking towards the 200 day EMA above, and then attacked the 0.70 level. Otherwise, if the market were to break down below the lows from earlier in the week, we could drop back towards the bottom of the rectangle on the chart.

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