AUD/USD Weekly Price Forecast – Australian Dollar Fails For The Week

The Australian dollar has rallied significantly during the week but gave back all of the gains to form a very ominous looking candlestick. This candlestick could be a sign that we are ready to break through the lows again, and if that’s the case it’s very likely that the next stop will be closer to the 0.65 handle underneath. Otherwise, if the market does turn around a break above the top of the candlestick for the week, that would make it an “inverted handle”, a sign that there was a significant change in attitude. At this point, if the market does break down, the 0.65 level is a level that will have a certain amount of psychological importance attached to it, and considering that we are ready to enter the same range that we had been in during the financial crisis, one would have to think there should be some buying in that area, but at this point it seems as if the market is insisting on testing that level.

AUD/USD Video 10.02.20

If the market does break above the top of the candlestick though, that would be a very bullish sign and it could send the market looking towards the 0.70 level. Quite frankly, we would need to see some type of sign of the coronavirus being contained in China, as it could in theory turn the economic situation around on the mainland, getting more demand for Australian commodities to rally. Furthermore, the wildfires have played havoc on the economy as well. The doors have been open for a rate cut later this year by the RBA, and the market is trying to reflect that.

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