AUD/USD Price Forecast – Australian Dollar Bounces Again

The Australian dollar has fallen a bit during the trading session on Monday, testing the 0.70 level before turning back around to show signs of extreme bullish pressure. That being said, part of this might be short covering ahead of the RBA meeting later in the day, so having said that it is likely that the short traders out there are looking to cover these short-term selling positions because of the possibility of extreme volatility. That being said, it is very likely that the next 24 hours could be very noisy. Furthermore, we also have the US election to worry about.

AUD/USD Video 03.11.20

While I do believe that the Australian dollar will eventually find its way lower, the question is not so much as to whether or not we will drift lower, but whether or not it will be immediate, or if we need to have another leg higher in order to do it. Unfortunately, until the RBA speaks it is probably almost impossible to guess that. That being said, the next 24 hours will be devoted to the US elections, which will also through the US dollar into major disarray. The 200 day EMA underneath offers a bit of psychological support, but quite frankly I think we do break down below it and go looking towards the 0.68 handle.

The one thing that would negate all of that is if we were to turn around a break above the 0.73 handle, something that is going to take a significant amount of momentum to make happen, or some type of shock coming out of the RBA. At this point, I do not see that happening.

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