AUD/USD Price Forecast – Australian Dollar Pulled Back to Support

The Australian dollar has initially tried to rally during the trading session on Thursday, but pulled back a bit as we started to see the market try to reach towards the 0.65 level, an area that of course will attract a lot of attention due to the fact that it is a large, round, psychologically significant figure. That being said, it is probably only a matter of time before we get some answers as to whether or not this long term move to the upside can hold.

AUD/USD Video 01.05.20

Quite frankly, one has to wonder where the momentum is going to continue to come from? The market looks highly likely to continue to see a lot of noise, but it should also be noted that we have overreached for some time. Unless you believe that the world is suddenly going to recover from the shutting down of the global economy, it is very unlikely that the Australian dollar can simply continue to go straight up in the air as it has.

This does not mean that the Aussie is going to fall apart either. I believe that it will be choppy but sooner or later we need to get a bit of a pullback in order to continue going higher even if that was the case. After all, the 0.65 level is likely to attract significant attention, and therefore I think that we will see very noisy trading overall with gravity eventually coming back into play. That being said, if we somehow blast through the 200 day EMA at the 0.67 region, then gravity will no longer matter.