AUD/USD Price Forecast – Australian Dollar Gives Up Early Gains

The Australian dollar has rallied a bit during the trading session on Friday initially, but then gave back some of those gains near the 0.66 handle. By doing so it shows that the Australian dollar continues to struggle a bit, and therefore it looks likely that we could pull back from here. The Australian dollar is at the top of the overall range, so therefore if we break back below the 0.65 level significantly, then it is time to start selling this market yet again. The market looks as if it is forming a bit of a “double top”, but that still remains to be seen going forward.

AUD/USD Video 11.05.20

On the other side of the equation, if the market can break above the 0.67 level, it then begins a major turnaround and bullish trend for a longer-term “buy-and-hold” type of scenario. The market has been running out of momentum for some time, so it does make sense that we could run into a bit of trouble. If we were to break down below the 50 day EMA, it is highly likely that the market would continue to go much lower, reaching towards the 0.62 handle, followed by the 0.60 level. To be honest, I am a bit surprised that the Australian dollar has been so resilient but the fact that the market has yet to make a fresh hide does perhaps suggest that we are finally starting to roll over. I anticipate we will give the answer to this question over the next couple of days.