AUD/USD Price Forecast -Australian Dollar Pulls Back From Major Level

The Australian dollar has pulled back a bit from the psychologically significant 0.70 level against the US dollar on Tuesday. That is an area that will continue to be important for this pair, because it is the scene where we had broken down significantly. Ultimately, this is the market level that I think most people were paid attention to, and if we were to break above the 0.71 level, this could signify a longer-term “buy-and-hold” type of trade. Granted, this market has been parabolic over the last several weeks but when you look at the longer-term chart, breaking above the 0.71 level becomes important on monthly charts, something that is most certainly worth paying attention to.

AUD/USD Video 10.06.20

The same monthly charts are what makes the 0.70 level so difficult to clear. With that in mind, we need to pay attention to the US/China trade situation, because it is going to be a major influence on where the market goes. Right now, it looks like things are deteriorating but so far not so bad as to make the market concerned. However, if it does start to become an issue, the Australian dollar will almost certainly pull back hard. If it does, the 0.6675 level is an area that would be worth paying attention to, as the market had seen that as resistance previously so it should be support. Furthermore, the 200 day EMA is sitting in that same area.

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