AUD/USD Price Forecast – Australian Dollar Continues to Fight Same BattleAustralian dollar rallied on Monday in a positive tone. We have a significant amount of resistance in the area of 0.70 it seems to be holding relatively firm.
There are a couple of ways to look at the Australian dollar right now. The first one is the simplest, that there is a massive amount of selling pressure above at the 0.70 level that extends to the 0.71 level. In other words, this is a market that should be faded on signs of exhaustion as it continues to show that area to be so difficult to overcome. Another way to look at this is that we are potentially trying to form some type of ascending triangle. If that is going to be the case, then we could be trying to wind the market up for a bigger move. If that does happen, one would have to think there would be some type of catalyst to get the world moving like that.
AUD/USD Video 14.07.20
There are a lot of Federal Reserve officials speaking this week, so perhaps one of the more say something to really get the US dollar selling underway, but at this point I think we continue to struggle above this area, simply because we do not have enough momentum to break through what has been very difficult terrain over the last several months. If we do manage to break out though, this could be the beginning of a rather special move as the Australian dollar would more than likely have a path towards the 0.80 level over the next several months. This of course would assume that there was some type of good news out there, or the Federal Reserve absolutely pummeled its own currency, something that it is apt to do at times.
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