AUD/USD Price Forecast – Australian Dollar Bounces

The Australian dollar rallied a bit during the trading session on Wednesday, as we continue to see a lot of volatility in the Forex markets. The latest positive news was the fact that Donald Trump is now suggesting that perhaps the stimulus checks for individuals in the United States should be something completely separate from the entire stimulus package, and therefore Wall Street and others started buying riskier assets as a result. Ultimately, I do think that this is a market that will give a lot of volatility and choppy trading setups, but if you are a short-term trader you may be able to take advantage of the latest headline or noise.

AUD/USD Video 08.10.20

The ultimate area to pay the most attention will be the previous uptrend line just above, which should offer resistance. Beyond that, we also have to pay attention to the area between 0.70 and 0.71, as it is a large area of previous support and resistance. This zone could very well determine the overall trend going forward, so it is most certainly something worth paying attention to. If we were to break down below it, I think that we could see significant US dollar strength coming back into the picture.

With all that being said, I like the idea of paying close attention to these levels. Once we get some type of signal based upon these levels, then I am more than willing to get involved in one direction or the other. I suspect that we probably have more downward pressure than up though, because if you think about all of the negative headlines that could potentially happen, it makes the most sense.

For a look at all of today’s economic events, check out our economic calendar.