AUD/USD Price Forecast – Australian Dollar Reaches Towards Big Figure

I am the first to admit that the rally has been relatively impressive, but at the end of the day we still do not have the finalize US election results, and even if we did, the results are not going to be what people once thought. The so-called “blue wave” does not seem to be happening, even if Joe Biden does become the president. This should put a little bit of a lid on stimulus and therefore it could put a bit of a lid on the dollar declined. Having said that, we are approaching an area that has been crucial for the Australian dollar, in the form of the 0.73 level. It would not be surprising at all to see sellers jump into this market and push lower.

AUD/USD Video 06.11.20

The size of the candle is somewhat impressive, and we are of course approaching an area that will attract a lot of attention. Ultimately though, the market is likely to see a lot of back and forth more than anything else. I think that we are essentially still in a range between 0.70 and 0.7350 or so, so all things being equal one would have to think that we may run out of momentum. If we do not, then the market will probably reach towards the 0.75 level given enough time. Another thing to keep in mind is that the FOMC meeting will of course have a major influence on where we go next, and that is something worth paying attention to as well, although it will be noted that the Federal Reserve has already suggested they have done about all that they can.

For a look at all of today’s economic events, check out our economic calendar.