AUD/USD Price Forecast – Australian Dollar Pressing Resistance

The Australian dollar pulled back just a bit during the trading session on Thursday as the 0.70 level continues to cause a lot of resistance. I believe there is a lot of sellers between there and the 0.71 handle, and that is especially true when you look at the longer-term charts. Because of this I think it is going to take a lot of work to finally get through there but if and when we do, this could be a huge move.

A break above the 0.71 level has me thinking that the Australian dollar will go looking towards the 0.80 level over the longer term. In the meantime, it looks as if buyers continue to look at the 0.60 level underneath as a major support. In fact, it is more or less a trading zone that we find ourselves and even though the Wednesday candlestick was somewhat impressive, the reality is that we did not break to a fresh, new high. With that in mind, I believe that we will continue to look at pullbacks as short-term buying opportunities.

AUD/USD Video 17.07.20

What makes of the 0.68 level especially interesting now is the fact that the 0.68 level also has the 50 day EMA encroaching on it. This could signify that there will be a lot of technical traders interested in that level as well. Regardless, the US dollar looks like it is in quite a bit of trouble in general, so I think that unless we break the 0.68 level it is going to be a bit difficult to short this market.

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