AUD/USD Price Forecast – Australian Dollar Testing Major Resistance

The Australian dollar initially tried to rally during the trading session on Wednesday but has given back quite a bit of the gains early during the trading session. By doing so, this is a sign that perhaps we are starting to run out of steam at a very crucial region. The question now is whether or not the market can continue to go higher? We are at an area that I think will tell where we are going longer term, as we are dancing around the 200 day EMA, and of course where we had broken down so significantly over the last couple of months.

AUD/USD Video 28.05.20

At this point, it is a “last stand” of sorts for sellers, because quite frankly the market has been chopping back and forth in trying to grind above this region but has not been able to do so quite yet. However, if we do break above the 0.67 handle, it is likely that the market continues to go much higher. Otherwise, we could see a long and slow move lower. Keep in mind that the Australian dollar is overly sensitive to the Chinese trade situation, and as a result it is likely that the market will be all over the place.

Ultimately, this is an area that I think is worth paying attention to, and therefore it is worth noticing whether or not the momentum can carry it higher. Quite frankly, this has been an extraordinary move, but one would have to think that eventually we run out of momentum. We have not had a significant pullback for the last 1000 pips or so. That is not normal behavior, just as it was not normal on the way down.

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