AUD/USD Weekly Price Forecast – Australian dollar continues to grind higher

During the previous week, we had a very strong candle stick for the weekly close, and then continue the upward momentum during the week over the last five sessions but have stalled a bit. This makes sense, because we aren’t quite sure what to make of the US/China trade situation yet.
Christopher Lewis
AUD/USD weekly chart, September 16, 2019

The Australian dollar rallied a bit during the trading for the previous week, and the 0.69 level has been tested. However, we have also seen the last couple of days of the week show just how much resistance there is. Ultimately, I think that the market will probably continue to be very noisy and held hostage by the Americans and the Chinese in their trade dispute, but so far it looks as things are getting a bit better, and that could continue to drive a bit of money in the Australian dollar. However, it should be pointed out that the daily chart hasn’t exactly looked overwhelmingly bullish, even as things have calmed down between Beijing and Washington DC.

AUD/USD Video 16.09.19

With that being the case, I suspect there’s some type of underlying issue here. I know that the Australian housing markets have a lot of issues, so that could be one thing that’s getting in the way but quite frankly the Australian dollar looks very unlikely to outperform any other currency right now. In other words, if this market was to suddenly shoot up in the air, you probably are going to be better off buying another wrist sensitive pair such as the NZD/JPY or perhaps even the CAD/JPY. The Australian dollar just has not performed well in what should have been a stronger follow-through. I suspect that given enough time we do pull back but the reversal candle shouldn’t be ignored either. In other words, this pair is going to continue to be choppy and messy. Longer-term traders probably stay away.

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
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.