AUD/USD Price Forecast – Australian Dollar Continues to Show Resiliency

The Australian dollar initially pulled back a bit during the trading session on Friday, but then turned around to rally again. At this point, the market seems to be struggling above the 0.64 handle, so I would not be surprised at all to see this give back some of the gains on the end of the session. Ultimately, the Australian dollar is running into a major ceiling, so it is highly likely that the market turned around given enough time. To the downside I believe that the 0.63 level is a bit of a target, and if we can break down below the lows just underneath there, then it opens up a move to the 0.62 handle.

AUD/USD Video 27.04.20

Currency markets have been very choppy and sideways overall lately, as traders are trying to figure out what to do next. Because of this, there are several currency pairs in the realm of majors that have been a real exercise in patience. The market is forming what could be seen as a bullish flag, but there’s so much in the way of resistance above that I find it very difficult to continue going higher, especially considering that the Australian dollar is so highly levered to China, which is going to be suffering at the hands of a global lockdown, and what is more than likely going to be a major change in the way people spend money. In other words, there are more changes out there than most people realize. In this scenario, Australia is not a big winter.