AUD/USD Price Forecast – Australian Dollar Gaps Lower And Then Has Wild Ride

The Australian dollar gapped lower to kick off the week on Monday, but then shot straight through the area as the Federal Reserve cut interest rates. That being said, the market rolled over to show signs of exhaustion and therefore it looks as if we are getting ready to head towards the 0.60 level. The Australian dollar is going to be highly levered to risk appetite and of course China itself. Ultimately, the situation in China isn’t getting any better, mainly because of the rest of the world at this point.

AUD/USD Video 17.03.20

Ultimately, fading rallies continues to work and I think short-term rally should be looked at with suspicion. The 0.60 level underneath will be the target, and eventually we probably even will make an attempt to break through there. This is significant, because it is the bottom of the financial crisis. The question at this point is whether or not the bottom is going to fallout or are we going to form some type of basing pattern? This is the argument that we will be having over the next couple of weeks, so it is certainly worth paying attention to. Once we do stabilize, this will be a career making trade, because quite frankly it would not be surprising at all once the dust settles to see this market move 20 handles to the upside over the next couple of years. In the meantime, fading short-term rallies will continue to be the best way and simply the easiest way to trade this market.