AUD/USD Price Forecast – Australian Dollar Continues to Try to Find Buyers

The Australian dollar has rallied a bit during the trading session on Tuesday, breaking above the top of the hammer that formed during the previous session. It looks as if the market is trying to reach back towards the 0.65 level, an area that should show a lot of resistance. That being said, we should also pay attention to the rate of change slowing down in this market, so I do think that we are getting close to forming some type of topping pattern. In the short term, it is likely that the market could try to reach to the upside, but then will probably run into a bit of trouble. At this point, if the market was to break above the recent high, then it is likely we could go looking towards the 0.67 level.

AUD/USD Video 06.05.20

On the other hand, the market was to break down below the hammer from the previous session, it would not only break down through a short-term support level, but also the 50 day EMA which of course is also a bearish sign. At this point in time, the question is whether or not the Australian dollar can continue to show a contempt for gravity like it has recently? The market has been paying attention to the coronavirus numbers coming out of Australia, which are much more hopeful than other parts of the world. That being said though, this is a market that is getting for two ahead of itself. If the 200 day EMA gets broken to the upside though, it is the end of the downtrend.