AUD/USD Price Forecast – Australian Dollar Pressing Support

The Australian dollar has found itself in the crosshairs of short-sellers during the trading session on Thursday, as we initially tried to rally but then sold off. There is a much to be worried about around the world right now, so that of course is showing itself in the demand for the US dollar. Ultimately, if we can break down below the 0.70 level, then it is likely that the market will go looking towards the 200 day EMA. After that, then it opens up the possibility of a move down towards the 0.68 handle. That being said, I do recognize that there is a lot of inherent risk in the world, and we are essentially forming a descending triangle, which measures for a move down to the 0.68 handle.

AUD/USD Video 30.10.20

At this point, we have been making a series a “lower highs” although have not been able to break down below the 0.70 level. If and when that happens, technical traders will get involved and start shorting rather rapidly. If we can break down below the 0.68 handle, then the uptrend is over, and we see more devastation. Quite frankly, the way things are starting to play out with the pandemic that would be much more of a realistic scenario that it was just a few weeks ago.

Beyond all of this, the Australian dollar has been much more resilient against the US dollar than many other currencies, so it is possible that this pair may have a little bit of “catching up” to do in order to show the same type of risk parameters that we have in other markets.

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