AUD/USD Price Forecast – Australian Dollar Sees Flash Crash To Open Up The Week

AUD/USD Video 10.03.20

The Australian dollar has broken down significantly during the trading session in a major “risk off” type of situation, as the oil markets have fallen apart and of course commodity currencies in general have all been hit rather hard. However, as we tested that major support level from the longer-term timeframe, the market bounced extremely hard. At this point, it’s all about the US dollar getting hit by almost every asset possible. Short-term pullback should be buying opportunities but if we find ourselves testing that low again, then it becomes a massive “buy-and-hold” type of situation where the Australian dollar could be something that you hang onto for several months, if not years. This will be especially true if the situation in Asia starts to get better and the coronavirus starts to get under control.

Ultimately, this is a market that will be very volatile, but it is at such extended low levels that it’s difficult to imagine a scenario where it is going to break down much further than it has already tried. Quite frankly, that would be pricing and something akin to Armageddon.

To the upside I see the 0.6775 level as a major barrier but if we can break above it then it opens up the door to much higher prices, and that trend change will see this market going to the 0.70 level, and then the 0.7250 level, and so on. I have no interest in shorting this pair after this type of bounce.