AUD/USD Price Forecast – Australian Dollar Continues to Press Major Level

The Australian dollar has continued to reach towards the 0.70 level, an area that to me looks like on longer-term charts as being massively important. The number of course has a psychological significance built into it as it is a large, round, psychologically well-known number. This is an area that previously had been massive support, now it should in theory be resistance. With all that being said, at the very least you have to look at this and recognize that we are overextended.

AUD/USD Video 09.06.20

Looking at the chart, I think that we could pull back towards the 0.68 level without putting much of a dent in this move. However, if we were to break above the 0.71 level could open up the door to a longer-term “buy-and-hold” type of situation. This is a market that relies on risk appetite, and quite frankly risk appetite was extraordinarily strong of the last couple of weeks, but nothing goes straight up in the air, at least not forever.

At the very least I think we are looking at an opportunity to take some profits for those who have been long of the Aussie dollar already, and then those who think that this is it for the short sellers might be able to get involved to short this market from a longer-term standpoint. Ultimately, this is a market that I think is going to move right along with risk appetite, which probably needs to calm down a little bit.

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