AUD/USD Price Forecast – Australian Dollar Pressing Same Resistance Barrier

The Australian dollar has rallied again during the trading session on Thursday, as we continue to see the 0.65 level offer a lot of psychological and structural resistance. At this point, it is highly likely that we are going to see this market continue to peel away from this area, and it is difficult to imagine that the market will simply shoot straight through it and make a fresh, new high. Having said that, the market doing so would of course be very bullish but there is also the 200 day EMA above there that could come into play.

AUD/USD Video 08.05.20

Ultimately, if we break down below the red 50 day EMA on the chart, that opens up the possibility of a move down to the 0.63 level. That is an area that could cause a little bit of support, and a breakdown below there could really open up the floodgates to a much bigger move to the downside. At that point, then we are looking at the 0.62 handle, and eventually the 0.60 level.

Keep in mind that the Australian dollar is highly levered to the Chinese economy, and even though China is back to work, there are not that many people buying the products. In other words, things are going to be very uneven for some time, and that of course works against the value of anything risk appetite based. Furthermore, when you look at the previous three candlesticks, there is clearly some type of range being formed in this area, at least for short-term traders.