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AUD/USD Weekly Price Forecast – Australian dollar breaks down for the week

Christopher Lewis

The Australian dollar initially tried to rally during the week, but then broke down rather significantly to form a very bearish candle stick. By doing so, it looks as if the market is going to try to reach towards the lows again, as the Australian dollar is so sensitive to the overall global growth and risk appetite around the world. The Aussie dollar has shown a lot of negativity for the last couple of years, and as long as the Americans and the Chinese continue to struggle to come to terms with some type of trade negotiations, then the Aussie will suffer as Australia supplies so much of the Chinese economy with its raw materials.

AUD/USD Video 23.09.19

The 50% Fibonacci retracement level has offered resistance, and as you can see with the weekly chart closing towards the bottom of the range suggests that there is more negativity to come. With that, the bottom will more than likely try to be attacked and broken through. Once that happens, the next major figure would be the 0.65 handle. The alternate scenario of course is that the market turns around and goes looking towards the highs of the past week as well. Beyond that, the market could go to the 0.70 level, which is a large, round, psychologically significant figure. However, the only reason that could happen would more than likely be some type of an agreement between the Americans and the Chinese, which seems very unlikely to happen.

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This article was originally posted on FX Empire