AUD/USD Price Forecast – Australian Dollar Finds Support at Same Area

The Australian dollar has found quite a bit of support at the 0.70 level for a while now, and Friday was no different. We bounced from there, but it does warrant noting that the market continues to make “lower highs”, and therefore it looks as if we are forming a bit of a descending triangle. Ultimately, this opens up the possibility of a move down to about 0.68 underneath, which was a previous support level. I do think that we probably see that happen, but in the short term we may have to rally a bit before we start selling again.

AUD/USD Video 02.11.20

At this point, the 50 day EMA is offering significant resistance over the last week or so, so it will be interesting to see if we get back to that area. On the other hand, we could just break down below the 0.70 level, and then go looking towards the 200 day EMA on the way down to that 0.68 handle. A lot of this is going to come down to risk appetite, which is dwindling each day. That being said, the market is likely to see a lot of volatility, but at this point in time I do believe that the downward pressure will continue to pick up, so on simply looking for signs of exhaustion on short-term charts after short-term rallies that I can take advantage of.

On the other hand, if we do break above the highs from earlier this week, then it opens up the possibility of a move to the 0.7250 level, possibly the 0.73 level. Nonetheless, risk is most certainly favoring the downside at this point in time.

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