AUD/USD Weekly Price Forecast – Australian Dollar Continues to Face Same Headwinds

The Australian dollar continues to show signs of hesitation at the 0.70 level, forming a bit of a shooting star. We are clearly at a point of inflection and this will be very frustrating for traders. All things being equal, I do think it is only a matter of time before we have to make a decision. At this point, if we were to break above the 0.71 level, I would assume that the trend has changed, and we would go looking towards the 0.80 level over the longer term. Alternately, if we were to turn around a break down below the 0.68 level, then we could drop significantly from there. At this point in time, I think it is only a matter of time before we make some type of bigger decision.

AUD/USD Video 20.07.20

The Australian dollar of course is sensitive to global growth and demand, and as you can see, we have made a massive “V-shaped recovery” in this currency pair. By doing so, things look a bit suspicious and if we were to continue to go higher, then we probably need to kill some time in this overall range to stabilize things. Otherwise, a break down below the 0.68 level might end up being a nice selling opportunity. At this point in time, I think it is only a matter of time before we make a decision, but we may have several weekly candlesticks to go through before that happens. We are currently between the 50 week EMA and the 200 week EMA, so that of course will have a major influence on what things are going to occur.

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