AUD/USD Price Forecast – Australian Dollar Continues to Press Resistance

The Australian dollar continues to reach towards the 0.70 level, an area that has been rather impressive resistance. It is also an area where we had seen the Australian dollar collapse rather significantly, so if we wipe that out, and I suggest that breaking above the 0.71 level does in fact make that happen, then it becomes more of a “buy-and-hold” scenario that people will be looking at.

In the meantime, I think we continue to be a market that will be buying the Australian dollar on dips, due to the fact that there is such a surge of “hope” out there. Having said that, if the Federal Reserve steps out and says something that is not quite kosher with the market, that could send this market right back down towards the 0.6675 handle.

AUD/USD Video 11.06.20

The Australian dollar is the ultimate expression of “risk on” for most currency traders, so it is worth noting that we are stubbornly pressing this area, so we are either going to see an explosion to the upside, or a massive panic selling situation that will hurt a lot of accounts. Unfortunately, we will not get any clarity until we get the 24 hour bar close, so it really will not be until Thursday that we can “safely” consider going long or short. I do think we are at a precarious level, but it is obvious that the buyers have been extraordinarily aggressive, so if the Federal Reserve gives then, this market could go much higher.

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