AUD/USD Price Forecast – Australian Dollar Continues to Defy GravityThe Aussie dollar has rallied again during the trading session on Tuesday but has found a bit of a barrier in the form of 0.65. It is at this point that I think the risk becomes skewed to the downside.
The Australian dollar initially pulled back a bit during the trading session on Tuesday, reaching towards the 0.65 handle as milestone in this pair as the 0.65 level giving way to sellers kicked off a major breakdown. At this point, I suspect that we are going to continue to see a lot of negativity around the world, and of course there is a major concern when it comes to the global supply chain, as well as demand. Ultimately, this is a market that should continue to take a look at the fact that there is going to be a significant lack of demand, and of course there is a major concern when it comes down to the Australian economy as a derivative.
AUD/USD Video 29.04.20
Ultimately, the Australian dollar has a significant amount of resistance between the 0.65 handle and the 0.67 level. The 200 day EMA slice is right through the middle of it, so that of course could cause even more exhaustion. At this point, I suspect that the market is going to continue to be choppy, but at this point the potential rally is much smaller than the potential break down. Simply put, you have much more risk to the downside than you do the upside because if for no other reason, we have no way of continuing this momentum forever. Ultimately, with the Federal Reserve and the ECB both in focus this week, the US dollar could get a bid depending on what the Federal Reserve does, and of course the ECB as well, which has a knock on effect.