AUD/USD Price Forecast – Australian Dollar Very Erratic

The Australian dollar has been all over the place during the trading session on Wednesday, as we are trying to figure out who the president of the United States will be next year. Ultimately, this is a market that is very sensitive to risk appetite, so it makes a certain amount of sense. All things being equal, the 0.70 level looks to be massive support, and it is holding so far. As long as that is going to be the case, then the market has to be looked at through the prism of an attempt to hold the uptrend. However, the more noise that we get it is likely that the 0.70 level will eventually be broken down. Ultimately, this is a market that I do believe continues to see a lot of general confusion, so it is going to be difficult to trade until we get news out of America.

AUD/USD Video 05.11.20

Looking at this chart, the 0.73 level above could be a significant amount of resistance, so at this point I suspect that we are going to continue to bounce around in this general vicinity. The question now is whether or not the United States is going to do some type of massive stimulus that will overwhelm the stimulus coming out of the RBA. It appears that markets believe so, but until we get clarity it is going to be difficult to imagine just how aggressive that gets.

If we were to break down below the 200 day EMA, that would be a very ugly look. Just couple of days ago it looked as if we were going to break down but unfortunately it does not look like we have clarity quite yet.

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