AUD/USD Price Forecast – Australian Dollar Continues to Look Heavy

The Australian dollar has shot straight up in the air for some time, and it looks as if we are trying to find some sense of gravity again. The 0.69 level of course is rather important, as we have seen it offer support the last couple of days. Having said that, the market is extraordinarily overbought, so we have one of two things we can do here if you are bullish: we can either grind sideways and eventually consolidate some of the gains before rallying again, or we can pull back in order to find buying pressure underneath. A pullback is certainly much healthier than the alternative, as this is a market that had gotten far too ahead of itself.

AUD/USD Video 12.06.20

If you are bearish, the 0.70 level continues to be a major area of contention and should be paid close attention to as it is a large, round, psychologically significant figure, and then of course the scene of a major breakdown. Now that we have reached this level, there will be a lot of work to break out to the upside. In fact, it is not until we break above the 0.71 level that I think you have the “all clear” when it comes to continuing the uptrend. With that being the case, I think it is only a matter of time before we have to make a longer-term decision. Currently, it looks a bit suspicious and likely to rollover from here. The 0.6675 level is an area that I believe should offer plenty of support.

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