AUD/USD Price Forecast – Australian Dollar Falls Hard In Risk Off Move

The Australian dollar get hammered as news broke that the Americans had assassinated a top Iranian general. That being said, the “risky” Australian dollar got sold off. That doesn’t concern me though, because the technical analysis dictated, we need to get down here anyway. What I’m more interested in is whether or not we can stay above the 200 day EMA. If we can do that, then I think that the market would continue to go much higher.

AUD/USD Video 06.01.20

Remember, I’ve been saying that I think were in the midst of a bit of a trend change, and if the United States and China can sign the “Phase 1 deal”, that should continue to push the Australian dollar higher due to its proximity to the Chinese economy. With that being the case, it’s very likely that we will find ourselves going higher given enough time, as we have broken above the 200 day EMA, and even reach all the way to the psychologically important 0.70 level. Furthermore, we have broken above a major downtrend line but at this point there will be a lot of volatility. Trend changes are always very messy to say the least, so keep that in mind. I believe that this is setting up for a longer-term “buy-and-hold” situation, but it may take a couple of attempts to make that actually stick. I have noticed in shorting the Aussie dollar anytime soon but would revisit that entire scenario if we break down another 100 pips or so.

Please let us know what you think in the comments below