AUD/USD Price Forecast – Australian Dollar Slams Into ResistanceThe Australian dollar shot straight up in the air during the trading session on Monday, as Asian and European indices all showed signs of strength. However, by the time the Americans came on board we started to see a little bit of a pullback.
The Australian dollar has rallied significantly during the trading session on Tuesday, slamming into the resistance barrier right around the 0.60 level. That’s an area that of course would attract a lot of attention as it is a large, round, psychologically significant figure. If the market can break through the 0.60 level, then it’s likely that we will go looking towards the 0.6250 level, perhaps even higher towards the 0.65 handle if we get a sudden “risk on rally” in the markets. Monday does seem to be somewhat bullish, perhaps in reaction to the Federal Reserve and its massive quantitative easing.
AUD/USD Video 25.03.20
All of that being said, Australia still suffers at the hands of being a commodity currency, and therefore it is likely that we will continue to see negativity around the Aussie dollar itself. After all, the world economy slowing down does not bode well for the idea of commodities gaining rapidly. With that in mind I believe that the Australian dollar still will find plenty of sellers just above, pushing the market down towards the lows again. Typically, when you see some type of massive meltdown like we have had in the financial markets, there is a revisit of the lows, and that’s what I’m anticipate seeing in this market going forward. The question isn’t so much as to whether or not we get another wave of selling but whether or not we are already starting to see it or if we are going to get a bigger bounce before it happens?