AUD/USD Weekly Price Forecast – Australian Dollar Pulls Back For the WeekThe Australian dollar has initially tried to rally during the week but then broke down again as the 0.60 level looks very likely to act as a bit of a magnet for price.
The Australian dollar has initially tried to rally during the week, but then broke down towards the 0.60 level, and hung around that area as it would attract a lot of attention obviously. Ultimately, I think that the market will then continue to see a lot of noise, but at this point it’s likely that the market will continue to move back and forth on the latest coronavirus numbers more than anything else. Ultimately, the global economy is going to continue to struggle due to the fact that nothing is moving, and that of course is going to work against the Australian dollar in general. We are in a downtrend as well, so I think we are going to simply kind of chop back and forth in the meantime.
AUD/USD Video 06.04.20
To the downside, we could very easily go down to the 0.58 level. To the upside, if we were to break above the 61.8% Fibonacci retracement level at the 0.6250 level, then I think the market could then go looking towards the 0.65 level above which is a massive about of resistance just waiting to happen. With that being said, the market is likely to continue to see noisy behavior, as there is a lot of uncertainty out there, which means that it’s difficult to be fully comfortable and stern in any position that you find yourself in. All things being equal though we are still in a downtrend so that’s something to pay attention to more than anything else. US treasuries continue to get a bit of a bid, and that of course helps the greenback as well.