AUD/USD Price Forecast – Australian Dollar Gets Hammered On Friday

The Australian dollar has gotten hammered during the trading session on Friday, showing signs of weakness yet again as money continues to flow out of Asia due to the coronavirus and simple slowdowns. The Australian economy is getting hammered from all fronts, considering that the wildfires continue to cause economic damage, and of course the lack of demand from China continues to be a major issue. The Chinese suffering at the hands of the coronavirus continues to slow the economy down, and therefore demand for Australian commodities will fall.

AUD/USD Video 10.02.20

As the United States is the loan shining example of a strong economy in the G 10, it makes sense that demand for commodities will continue to get hammered. Looking at this chart, the shooting star from the Wednesday session makes quite a bit of sense as a selling point, and in hindsight was an excellent place to get short. There are a couple of shooting stars not only on Wednesday but also on Thursday, and that is a very strong sign that shows there is plenty of weakness. Having said that, if the market were to break above the top of the shooting star, then it could rally towards the 50 day EMA but quite frankly it would take a complete turnaround in the overall attitude. A break down from the bottom of the trading range on the Friday candlestick has this market going lower but I would also caution that we are approaching the top of the range that the market had been in during the financial crisis, meaning that this decline is getting long in the truth.

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