AUD/USD Price Forecast – Australian Dollar Continues to Chop Around

The Australian dollar has gone back and forth during the trading session on Wednesday, as we have seen a lot of confusion in general. The market seems to see a lot of interest at the 0.69 level, which is interesting considering that previously the 0.70 level was massive resistance. I am not ready to say that we are going to revisit that level above, but it certainly looks as if we are starting to drift a little bit lower. Perhaps we have expended enough energy to turned back around and cannot quite break out yet. If that is going to be the case, then it makes sense that we could drip down towards the 0.6675 handle.

AUD/USD Video 18.06.20

The 200 day EMA underneath will offer support, and therefore I would anticipate that the 0.6675 level would be an interesting place to be. Furthermore, the 50 day EMA is starting to reach towards the 0.6675 handle, and of course the 200 day EMA. If the 50 day EMA crosses above that moving average, then it is the “golden cross” which a lot of longer-term traders really seem to like. However, it should be noted that the success rate of this pair of moving averages crossing each other is a bit suspect, so at this point I think it is not reason enough to start buying. Sometimes that works, but quite frankly over the longer term you will find that it does not work enough to make it a viable trading strategy.

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