AUD/USD Price Forecast – Australian Dollar Continues To Test Major Support Region

The Australian dollar initially tried to rally during the trading session on Wednesday but gave back quite a bit of the gains heading towards the FOMC statement. Ultimately though, we are getting dangerously close to a major support level in the form of the 0.67 level which is the top of the range that the market had traded in during the financial crisis 12 years ago. In other words, the Australian dollar is extraordinarily cheap from a historical perspective so one would have to think that there will be value hunters looking to get involved. That being said, one thing that could truly help the market is if the Federal Reserve decides to be overly dovish, as it should work against the value of the US dollar longer term. Furthermore, it could drive this pair all the way back to the 0.70 level, but at this point that is all conjecture.

AUD/USD Video 30.01.20

It is probably best to let this daily candle closes before putting money to work, because there is simply a bit of a gamble attached to any trade you put on ahead of time. If we were to break down below the 0.67 handle, we then start to look for targets every 100 pips all the way down to the 0.64 handle. That being said, it would be a very negative sign for risk appetite overall, as it would represent people running towards the US dollar for safety more than anything else. Remember, Australia is highly sensitive to Asia so pay attention to the Chinese situation as well.

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