AUD/USD Price Forecast – Australian Dollar Making Lower Highs

The Australian dollar tried to rally a bit during the trading session on Wednesday, but it seems as if it is running into a bit of trouble at the 50 day EMA. The market seems to be respecting this moving average, so it is worth paying attention to. Looking at this chart, the 61.8% Fibonacci retracement level has offered significant resistance, and of course the 0.65 level above is an area that will attract a lot of attention due to the fact that it is a large, round, psychologically significant figure. Furthermore, the Australian dollar has a lot of fundamental issues as well.

AUD/USD Video 23.04.20

The main driver of this pair as of late has been the idea as to whether or not the economy is going to grow or not globally. Clearly, there are a lot of issues out there when it comes to growth, so it is difficult to imagine a scenario where suddenly everything picks up and a lot of traders will put on a ton of risk. That does not mean that we cannot get a short-term pop, but I believe that the 0.65 level is going to act as a bit of a “ceiling” in this market. To the downside, I believe that the 0.62 level underneath is the initial target, and then possibly the 0.60 level underneath there. Don’t get me wrong, I don’t think this is necessarily going to be some type of meltdown, but I think that there is still a significant amount of bearish pressure that will continue to weigh upon the Aussie going forward and therefore I like the idea of fading short-term rallies.