AUD/USD Price Forecast – Australian Dollar Hits Brick Wall

The Australian dollar has gone back and forth during the trading session on Tuesday, as we have continued to see a push to the upside. However, the 0.7350 level has been massive resistance previously, and it is very likely that we will continue to see it as such in the short term. Whether or not we can break above there is still another question, but at this point in time I think it is very likely that we are going to see a little bit of a pullback in the short term. If we break down below the 0.7250 level, then it is likely that we pulled back into the previous consolidation range.

AUD/USD Video 18.11.20

The Australian dollar of course is highly levered to the idea of global growth, and while we have a couple of potential vaccines coming down the road, the reality is that in the short term we have coronavirus figures getting worse, and lockdowns becoming more common. If that is going to be the case, it is difficult to imagine that there is suddenly going to be a push into economic expansion. Furthermore, the Reserve Bank of Australia has recently noted that they are going to go extraordinarily loose with monetary policy, and possibly even go into negative rates. If that is the case, that will not help the Aussie dollar either. At this point, I think we are most certainly at high risk to see a bit of a pullback.

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