AUD/USD Weekly Price Forecast – Australian Dollar Rallies Into Resistance

The Australian dollar has found itself above the 0.65 level again during the week but continues to see sellers in this general vicinity. At this point, it looks likely that the market could roll over a bit, and certainly has a lot of resistance to deal with. The Australian dollar is overly sensitive to the global economy, which of course has a lot of questions around it.

The 0.65 level is a major resistance barrier and is something that should be paid attention to. To the downside, I do believe that we could go as low as 0.6250 over the next couple of weeks, and perhaps break down further than that. We have clearly seen a massive bounce back from the extreme lows, so now the question is whether or not we can keep up the momentum? I doubt that is the case but when you get some type of big move like this, you see one of two things: you either see the market grind sideways in order to consolidate gains, or at the market will roll right over, as momentum dies.

AUD/USD Video 11.05.20

I do believe that we probably see the market break down from here, but you cannot trade based upon what you thinks going to happen, you must react to what the market is doing. I anticipate that the next candlestick on the weekly chart will be significant indication as to where we go. Ultimately, the market has a decision to make and your job as a trader is to simply wait to see what the market tells you to do.