AUD/USD Price Forecast – Australian Dollar Showing Signs of Exhaustion

The Australian dollar initially tried to rally during the trading session on Friday but gave back the gains to show signs of exhaustion. By doing so, it suggests that we are just about done with the potential “dead cat bounce”, that we have seen so far. Ultimately though, we need to pay attention to where the next move goes, because it could be a significant one, due to the fact that we need to pay attention to whether or not we make a “higher low” or not. If we do, that could be the beginning of a bottoming pattern.

AUD/USD Video 30.03.20

Ultimately, we may simply turn around a break the top of the candlestick from the Friday session. If we do, then that is a bullish sign and should send this market towards the 0.6250 level, and then ultimately the 0.65 handle. Breaking above there would be a very bullish sign, but we have already broken above a shooting star, and it gets difficult to do over the longer term the more times you attempt to do that. At this point, I do favor shorting this market, at least for the next few sessions. A breakdown below the 0.60 level will attract a lot of headlines obviously, especially if there is some type of concern. Keep in mind that the Australian dollar is highly levered to global growth, so that of course is something to pay attention to as well. In this environment, please keep your position size smaller than usual.