AUD/USD Weekly Price Forecast – Australian Dollar Pierces Major Round Figure

The Australian dollar significantly rallied a bit during the week, breaking above the 0.65 level before selling off towards the end of the same week. Ultimately, this is a market that I think could continue to see a lot of noise, especially in this area as it is a large, round, psychologically significant figure, and the beginning of a major breakdown. Having said that, it is also worth noting that there is a hammer from the previous week, and a neutral candlestick, known as a “long legged doji”, which shows the possibility of support as well. In other words, this is a market that screams that it wants to chop around.

AUD/USD Video 04.05.20

Do not be wrong, we will make a clear move sooner or later, but for the longer-term trader, you need to be cautious and wait for a breakout of this range of candles to put money to work. The reason I say this is that there is quite a way to go once we do break out in one direction or another. It is worth noting that the market has rallied quite nicely, but now we are at the level of a significant break down, and what is a longer-term cyclical downtrend. In other words, it is probably easier to fall from here than it is to rise, but if it rises, you have to assume that the trend has changed at that point in time. This is going to be a very couple of interesting weeks ahead of us that could determine where the Australian dollar goes for several months. In other words, a little bit of patience should pay off quite nicely.