AUD/USD Price Forecast – Australian Dollar Peaks Through 200 Day EMA

The Australian dollar continues to grind higher, breaking above the 200 day EMA midday. Having said that, the market is likely to have to make some type of decision as to where we are going longer term. If we can clear the 0.67 level, we will have blown through the last bits of resistance, and it is likely at that point the market then goes looking towards the 0.70 level. That being said, the market is likely to continue seeing a lot of volatility, and therefore the Australian dollar is going to be one of the more interesting pairs to pay attention to.

AUD/USD Video 27.05.20

At this point, I do believe that the market breaking back down below the 0.66 handle could be a sign that we are continuing what looks to be a bit of a “rounding top”, but obviously we need to see a daily close to make that assumption. At this point, it certainly looks bullish, but I am waiting until we get that daily close, either above the 0.67 to start buying, or below 0.66 to start selling again.

The market is clearly on the precipice of major move one way or the other, and I have to admit that I am overly impressed by the resiliency of the Aussie dollar. The question now is whether or not we start to pay attention to the global economy, or if we pay more attention to the potential bullishness of economies reopening, albeit at much weaker levels? Remember, when you look at the chart you are paying attention to emotion at the same time.

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