AUD/USD Price Forecast – Australian Dollar Continues to Toy With Same Area

AUD/USD Video 19.05.20

The Australian dollar has rallied again during the trading session on Monday, as the 50 day EMA has offered support. The market looks as if it is trying to figure out what to do about the 0.65 handle, an area that should continue to be important based upon longer-term charts. Ultimately, the 0.65 level is an area that will attract a lot of headline attention, and therefore do not be surprised at all to see sellers in that general vicinity.

This is an area that should continue to find plenty of resistance, because quite frankly we have failed their multiple times. If that is going to be the case going forward, then this could be an excellent selling opportunity. I believe that there is a massive barrier that extends from 0.65 at that reaches to the 0.66 level, not to mention the fact that the 200 day EMA is in the same neighborhood as well. Ultimately, this is a market that has shown itself to be extraordinarily resilient, but it should be noted that we are most certainly losing momentum.

Because of this, I am looking for opportunities to sell the Australian dollar going forward, especially considering that the market for the Australian dollar quite often mirrors what is going on in China and global growth. Yes, there is noise about a potential vaccine out there, but the reality is that it is months, if not years away, so there is no reason to think that the world is suddenly going to change overnight. We are starting to see a bit of a pattern here, that the beginning of the week is “risk on”, while the rest of the week is selling. That may be something worth keeping in the back of your mind.