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

The Australian dollar has rallied rather significantly during the course of the week but has given up some of the gains on Friday. There is an uptrend line that we had been testing, and at this point it looks as if it may hold as resistance. With that in mind, I like the idea of buying some type of pullback, because I also recognize that the 0.70 level looks to be massive support. However, if we can break above 0.7350, then the market is likely to go racing towards the 0.75 handle, and perhaps even beyond.

AUD/USD Video 09.11.20

One of the biggest issues of course is the fact that the Reserve Bank of Australia has already suggested that the possibility of negative interest rates are a real one in Australia, and that is toxic for a currency. A lot of what we had seen recently was due to the belief that the United States was going to see a “blue wave”, meaning that the Democrats would run everything. If that were the case, the spending would have been enormous and therefore traders were trying to get ahead of massive stimulus packages coming out of DC.

That being said, the market is likely to be very noisy and I do think that a pullback makes quite a bit of sense. Ultimately, we will eventually be given some type of clarity, but at this point in time we do not have it so one would have to assume that there is more consolidation until there is not. I wish I could tell you something more intelligent than that, but it is what it is.

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