AUD/USD Price Forecast – Australian Dollar Seemingly Heavy

The Australian dollar has pulled back just a bit during the trading session on Thursday, as we continue to see the 0.73 level as an area of significant resistance. At that point, we have a certain amount of supply, and therefore I think it makes sense that we drop from here. That being said, when you look at the overall picture of the Australian dollar, you can make a strong argument for a consolidation range between the 0.70 level underneath and the 0.73 level above.

AUD/USD Video 13.11.20

The 50 day EMA is sitting near the 0.7150 level, an area that attracts a lot of attention due to that moving average. The 200 day EMA sits just below the 0.70 level, and all of this being said it is likely that the market will continue to see a lot of back and forth due to the fact that the Reserve Bank of Australia is threatening negative interest rates, and at the same time the coronavirus numbers are rising in the United States as well as the rest of the world. Ultimately, this weighs upon risk appetite, so that of course has a certain amount of an effect on the Aussie dollar itself as it is a risk on type of currency.

I think at this point we are more likely than not to see a little bit of a pullback, as we are at fairly stretched values. This does not mean that I am expecting some type of break down, it is just that I think that the market is starting to “lean to the downside.” If we were to break down below the 200 day EMA, then we could see an even bigger move.

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