U.S. Markets closed

AUD/USD Price Forecast – Australian dollar continues to drift lower

Christopher Lewis

The Australian dollar has fallen a bit during relatively light trading on Monday as the Americans were away for Labor Day. With that being the case it looks as if we are going to continue to go lower, reaching down towards the 0.67 level, perhaps reaching down towards the 0.65 level after that. In this short-term chart, I think that we are going to continue to see selling pressure above every time we rally. The 0.68 level above is massive resistance, and I think at this point we will continue to see a lot of pressure that continues to build up. The Australian dollar of course is suffering at the hands of the US/China trade situation and therefore as Australia’s so highly levered to China it’s likely that we will continue to see trouble.

AUD/USD Video 03.09.19

At this point in time it looks as if the market cannot be bought, at least not until we break above the red 50 day EMA that I have marked on the chart and even then we would need to see some type of major boost in the momentum to the upside. At this point, the market is standing on tenuous ground to say the least as we have a world of negativity out there, and of course a serious crushing of global growth. At this point though, the one thing that does help the Australian dollar is that it is somewhat tied to gold. Even with that though, we have not been able to rally.

Please let us know what you think in the comments below

This article was originally posted on FX Empire

More From FXEMPIRE: