AUD/USD Price Forecast – Australian dollar bounces slightly

The Australian dollar bounced a bit during the trading session on Thursday, as the 0.6750 level has offered a significant amount of support. That being said though, if we were to break down below there we could drop as low as 0.67. This is a pair that has been choppy for quite some time, with sudden bursts in one direction or another. The market shows signs of confusion, which makes quite a bit of sense considering that the Australian dollar is so sensitive to the Chinese economy which means essentially that it is sensitive to the US/China trade negotiations which are essentially in a “holding pattern.”

AUD/USD Video 27.09.19

Chinese economic figures have been rather weak lately, so it should continue to weigh upon the Aussie dollar, but there are also concerns when it comes to the United States as far as politics are concerned. Ultimately, that is the push pull situation that we find ourselves in at this point.

As far as the historical price action is concerned, the 50 day EMA has been rather important, but also the 0.69 level has been crucial as the 50% Fibonacci retracement level to turn the market back around recently. Just below, the 0.67 area has been rather supportive and caused a major bounce. Because of that, one would have to expect to see a bit of support in that area if we get down there. This is a market that needs to make a decision rather soon, but it’s not until we get some type of good news out of the US/China scenario that this market takes off to the upside.

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