AUD/USD Price Forecast – Australian Dollar Still Choppy

The Australian dollar has gapped lower to kick off the trading session on Monday, only to turn around and slam into the previous uptrend line and find plenty of resistance. Now that we have found that resistance barrier to be stringent, the market fell towards the 0.72 level where the buyers came back into play. That being said, we find ourselves dealing with the same questions as we did last week, mainly as to whether or not this trend line will offer resistance.

AUD/USD Video 13.10.20

This is more than likely going to come down to risk appetite more than anything else and of course the possibility of fiscal stimulus coming out the United States. There is still hope that it is coming given enough time, but the markets are more than likely going to have to factor in the idea that it is coming after the election. If that is the case, that could drive up the value of the US dollar, at least in the short term.

To the downside, I see a lot of support between 0.70 and 0.71, an area that has been a significant “zone of influence” for some time. In other words, I think we are more than likely going to go sideways more than anything else, and at this point we are basically at the top of that short-term range. Obviously, if we break above the uptrend line, specifically closing above it on a daily chart, then that would be a very bullish sign. Right now, I think there are far too many questions out there for the market to take off in one direction or another.

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