AUD/USD Price Forecast – Australian Dollar Struggling With Resistance

The Australian dollar has pulled back just a bit from extreme resistance during the early hours of New York trading on Friday. After all, the jobs number came out and was a bit stronger than anticipated, but it is very likely that we will continue to see noisy behavior in this market as we are clearly near the top of range. Keep in mind that the Reserve Bank of Australia has already committed to further quantitative easing and the possibility of negative interest rates, while the United States seems to be heading towards a divided government, which could keep stimulus somewhat tamed.

AUD/USD Video 09.11.20

That being said, I would expect a lot of noise over the next few sessions, but it does look like we are getting a bit exhausted. At the very least I think a pullback is probably reasonable, so I would keep that in mind as well. The 0.70 level underneath is a major support level as well, as the 200 day EMA sits underneath it. If we break down below that level, the market is likely to go much lower. At that point, my target would be closer to the 0.68 handle, although a lot of things have to happen for that to get going. In the meantime, I think a simple pullback for the next day or so makes quite a bit of sense, especially as there are so many risks out there. We are approaching major supply, so all of this makes quite a bit of sense.

For a look at all of today’s economic events, check out our economic calendar.