AUD/USD Price Forecast – Australian Dollar Continues to Stretch

The Australian dollar has rallied during the trading session again on Tuesday, reaching above the 0.64 level but does seem to be running out of momentum. The change in the “rate of change” when it comes to the upside is something that should be paid attention to, furthermore I believe that the 0.65 level above is resistance. In other words, we are getting close to the top if we aren’t there already. Furthermore, you should keep in mind that the main driver of the Australian dollar is typically global growth, and China. While China seems to be going back to work the reality is that people don’t need Chinese goods right now. In other words, there is more pain to come.

AUD/USD Video 15.04.20

Looking at the chart, I believe that the market could go down to the 0.62 level, perhaps even down to the 0.60 level after that. Ultimately, it could take a leg lower based upon bad news, which one would have to think is likely going to show itself sooner or later. The 0.60 level is massive support though, so don’t expect to be able to slice through there unless we get some type of significant announcement that throws the world into a bit of a panic. I think this is probably going to be more of a grind lower, as we have simply gotten ahead of ourselves in the short term. Remember, Australia is in its first recession in over 30 years, which is something that should be paid attention to as well. The one thing that is lifting this currency is gold showing strength.