AUD/USD Price Forecast – Australian Dollar Runs Into Resistance

With the jobs number coming out of America on Friday, it’s very likely that the Australian dollar will be very reactive in a situation that should show quite a bit of volatility in the short term. We have seen a significant bounce in the Australian dollar of the last couple of days, but it now looks as if the 0.6775 level is going to be very difficult to break above. If that’s going to be the case, then it’s very likely that the market pulls back just a bit before trying to form a bit of a base of the lows again. If we can break above the highs from the trading session on Wednesday, that would be a very bullish sign and send this market looking towards the 0.6850 level.

AUD/USD Video 07.02.20

Keep in mind that the Australian dollar has been sensitive to everything that’s going on in Asia, as it is a proxy for the Chinese currency. Ultimately, this is a market that is sitting on top of major lows from the financial crisis, so this should be a significant amount of support underneath as the currency is so oversold. Quite frankly, I believe that is soon as we “turn the corner” in China the Australian dollar will probably be one of the biggest beneficiaries. That being said, it’s going to be very noisy and difficult in the meantime to hang on to this position if you are trying to go long, as it is more of an investment than anything else. Position sizing will be crucial in this scenario. For what it’s worth, the area that the market traded in during the financial crisis extends from 0.67 down to the 0.64 level.

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