FXEMPIRE
All

AUD/USD Price Forecast – Australian dollar tries to recover

The Australian dollar tried to rally during the trading session on Tuesday but found enough resistance at the large figure to roll back over.
Christopher Lewis
AUD/USD daily chart, August 07, 2019

The Australian dollar rallied significantly during the trading session on Tuesday initially but found enough resistance at the 0.68 handle above. However, we have pulled back from there as we continue to see a lot of issues when it comes to the US/China trade relations. After all, the Americans labeled the Chinese “currency manipulators” which of course is the next step higher in the currency wars. Beyond that, this is a market that is oversold but quite frankly the fact that we can’t get above the 0.68 level tells you just how negative people have gotten when it comes to the US/China trade situation.

AUD/USD Video 07.08.19

At this point, it’s very likely that we are going to go lower at this point, perhaps looking towards the 0.65 handle. That’s an area that is a large, round, psychologically significant figure, and therefore I think it will attract a certain amount of attention. Ultimately, this is a market that I think is falling apart for several reasons. Looking at this chart, if we reach towards the 0.69 level above, there will be even more resistive. I think every 50 pips or so you will continue to see trouble.

At this point in time, it’s very likely that the market is oversold, but quite frankly nobody seems to care. Overall, the US dollar should continue to strengthen due to the fact that there are a lot of geopolitical concerns, and of course there is a significant amount of concern when it comes to the Chinese economy. All things being equal, treasury markets continue to attract a lot of money, so therefore this pair should continue to drop as well.

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
IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US