AUD/USD Price Forecast – Aussie Roles Over Again

The Australian dollar has gone back and forth during the trading session on Thursday yet again, initially tried to rally but then breaking down, looking to bounce again. Ultimately, I think that the market simply doesn’t know what to do and that makes sense considering that we are trading on raw emotion at this point. There is nothing to figure out other than whether or not the market is freaking out at the moment. If it is, the Australian dollar is selling off, right along with other Asian currencies. We are having a hard time coming to grips with the markets, and quite frankly with the Federal Reserve cutting interest rates the other day and a surprise move, it’s only thrown more chaos into the marketplace. At this point, the market can do anything at any moment in time, so you need to look at the larger time frames and more important areas to trade. Right now, the 0.67 level is a massive resistance barrier that I think the market is pretty set on trying to reach.

AUD/USD Video 06.03.20

At that point, if there are signs of exhaustion, then it’s probably time to start selling the Aussie dollar again. After all, although things are starting to slow down and China it’s not necessarily a done deal and it’s very likely that we will continue to struggle from a longer-term standpoint. In general, if we can break above the 0.6775 handle, then the trend will have changed quite a bit, but I think that seems to be very unlikely to happen in the short term. Although the US dollar is hurt right now, the reality is markets really don’t know what to do and there is still a shortage for greenback.