AUD/USD Weekly Price Forecast – Australian Dollar Peaking?

The Australian dollar has gone back and forth during the course of the week, which makes quite a bit of sense considering how much noise there is out there when you think of the coronavirus, the global supply chain, demand, supply, and a whole host of other issues. At this point, the Australian dollar has recovered quite nicely after a massive meltdown, but now as the market approaches 0.65 handle, it looks to me as if it is running out of momentum. It’s worth noticing that the market stopped right at the 61.8% Fibonacci retracement level, just below the 0.65 handle.

AUD/USD Video 20.04.20

Looking at the shape of the candle, this suggests that we are going to set up for some type of “binary trade”, you simply take a look at the candlestick, and trade in whatever direction the market breaks. It’s not quite that simple though, because there is obviously going to be a certain amount of resistance built in at the large, round, psychologically significant figure of 0.65, which I think it extends to the 0.66 level. Even though it has been rather bullish as of late, I still believe that the path of least resistance is to the downside, perhaps sending this market back down to the 0.62 handle. One thing is for sure, the weekly candlestick is somewhat welcomed due to the fact that the market had been far too volatile over the last couple of months. Some type of stabilization would be welcomed by most traders around the world as the volatility has made trading currency is very difficult.