AUD/USD Weekly Price Forecast – Australian Dollar Has Big Week

The Australian dollar has exploded to the upside during the week, breaking through a significant amount of resistance. At this point, the market is hanging around the 0.6350 level, and it has formed a huge candlestick. If you can break above that candlestick, then the market is more than likely the two go towards the 0.65 handle after that. That’s an area where I expect to see a lot of selling pressure, and therefore I think that is about as far as the Aussie goats in the short term. However, if we break above that level it’s likely that we will continue to go towards the 0.67 handle.

AUD/USD Video 13.04.20

On the other hand, we could get a little bit of a short-term pullback as we had broken through a significant amount of resistance and gotten a bit overextended over the course of a couple of days. I believe at this point to 0.60 level underneath is going to be massive support, and at this point it’s likely to be an area that will attract a lot of attention as it has in the past. The length of the candlestick of course is something to pay attention to as well, as it is long so therefore it suggests that there is a significant amount of buying pressure underneath.

The Australian dollar is highly sensitive to all things China related, and of course global growth related. Before getting a bit more optimistic due to the coronavirus numbers in the fact that the Federal Reserve has dumped $2 trillion worth of stimulus into the markets again suggests that the US dollar may continue to lose a little bit of strength in the short term.