Advertisement
Advertisement

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

By:
Christopher Lewis
Published: Oct 14, 2020, 13:29 UTC

The Australian dollar did rally a bit during the trading session on Wednesday, but at this point the recovery is small to say the least.

AUD/USD

The Australian dollar has rallied slightly during the trading session on Wednesday, as we continue to see the 50 day EMA have an influence on this market. Ultimately, the 50 day EMA is flat so it suggests that the market is essentially killing time in this area. The previous uptrend line is now offering resistance, and now it looks as if we are trying to form some type of rising wedge, which is a potentially negative sign.

AUD/USD Video 15.10.20

Looking at the chart, I see a significant amount of interest and support between the 0.71 level and the 0.70 level, so it is likely that it will be difficult to break down through that area. If we did, it is very possible that this market could go much lower. In fact, the market is likely to see a bit of a “trapdoor opening.” If that is going to be the case, the move could be rather quick and decisive. However, on the other hand if we were to break above the previous uptrend line, we will almost certainly go looking towards the 0.74 handle, followed by the 0.75 level.

Ultimately, the market is focusing on the possibility of stimulus out of the United States, and that has a massive influence on the US dollar in general. The Australian dollar course will continue to focus on China and the possibility of growth from a global standpoint as well, considering that the Aussie is a commodity currency. With this, this is a market that I think will continue to see a lot of noise due to the fact that the markets have so many different moving headlines to pay attention to.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement