AUD/USD Weekly Price Forecast – Aussie Dollar Forms Support of Candle

The Australian dollar has initially tried to rally during the course of the week, and then slammed down towards the 0.70 level underneath. If we can break down below the 0.70 level, then the market is likely to go looking towards the 50 week EMA. When you look at the daily timeframe, you can make a significant argument for a move down towards the 0.68 level, which you can see that offered a bit of support even on the weekly chart.

AUD/USD Video 02.11.20

When you look at the chart overall, you can see that we have been parabolic for some time, so the fact that we pulled back a bit should not be a huge surprise. However, if we break down below the 0.70 level you might even hear a bit of an audible “snap” in the market as it is a huge level not only from a psychological standpoint, but from the fact that it was a major breakout previously. Now that we have tested it a couple of candles in a row, the question now is whether or not we can continue to go higher?

At this point I think we are looking at the risk appetite out there and the Australian dollar is going to have to make a serious decision. We have clearly had a major shock to the upside, and as a result the markets are now looking to make a bigger move sooner or later. We have the US elections; we also have concerns about coronavirus lockdowns and stimulus in the United States. In other words, we have an absolute mess just waiting to sort itself out. As things stand right now, it is not until we break above the 200 week EMA that I would be a buyer, but there is a clear cell point just below the 0.70 level.