AUD/USD Price Forecast – Aussie falls
The Australian dollar fell again during the trading session on Wednesday, as we continue to see a lot of noise in general. This is a market that of course it does react to risk appetite, and with the US/China situation still looking very poor, it’s not a huge surprise to see that we could be struggling. Remember, the Aussie is extraordinarily sensitive to what goes on in China, so it makes sense that we continue to see a lot of back-and-forth. I do think that we are trying to bottom out, but this can be a long-term process.
AUD/USD Video 13.06.19
The next support level that I see is at the 0.69 handle, followed by the 0.6850 level, and that of course the 0.68 handle which is a major support level. If we were to break down below there it would probably represent some type of major change in risk appetite globally, as we would see a lot of carnage in markets. However, keep in mind that if gold rallies that could provide a bit of a cushion in this market, just as the Federal Reserve stepping away from its tight monetary policy can.
Confused yet? You should be. This is a market that has so many moving pieces that I think it’s probably more of an investment on hope than anything else. I believe we continue to go back and forth in 50 pips increments over the next several weeks, at least until some type of headway is made in the US/China situation.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
