AUD/USD Price Forecast – Australian Dollar Continues to Chop Back and Forth

The Australian dollar went back and forth during the trading session on Thursday, showing signs of choppy behavior when it comes to risk appetite. Ultimately, the Australian dollar is a reflection of how traders feel about Asia. The Australian dollar has found quite a bit of selling pressure near the 0.70 level, which is an area that extends all the way to the 0.71 level, an area that I think opens up the door for a longer-term “buy-and-hold” regime change. Until then, I think that you will see a lot of noisy momentum in both directions, so it is difficult to hang on to the market for a bigger move.

AUD/USD Video 19.06.20

On the other hand, if we break down below the lows of the week, as likely that we go looking towards the 0.6675 handle, an area that previously had been resistive. That resistance should now be supportive, so the fact that the 200 day EMA is starting to race towards that level also suggests that there will be plenty of support.

Nonetheless, I think the only thing you can count on in this type of environment is extreme amounts of volatility, that makes quite a bit of sense as we continue to worry about the reinfection of China, and the global growth situation being so tenuous. I do believe that more likely than not we will find sellers, but it is not going to be an easy move in either direction. Short-term back-and-forth trading is probably the most likely of outcomes in this market, so be prepared to have short-term trading being the theme going forward.

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