AUD/USD Price Forecast – Australian Dollar Continuing to Grind Lower

The Australian dollar has broken down significantly during the trading session on Monday only to turn around and bouncing early in the New York session. Ultimately, this is a market that has gotten far ahead of itself and I do pay quite a bit of attention to the candlestick from last Thursday which suggests that there could be a bit of trouble above for buyers. Ultimately, I think that the market continues to see the 0.70 level as a massive resistance barrier, so it is worth paying attention to.

AUD/USD Video 16.06.20

To the downside, the 0.6675 level is where we see the 200 day EMA sitting and is a potential target if we continue to see some type of negativity out there. It will be interesting to see how this plays out, because quite frankly this is a market that I think is catching a lot of attention. China is starting to see another wave of infections, so the Australian dollar rallying probably has somewhat of a limited shelf life.

Because of this, I am looking for short-term opportunities to short the Aussie dollar, as I think there will be plenty of negative headlines out there just waiting to cause issues. With that, I believe that we are far too late in the uptrend to start buying so I am looking for signs of exhaustion. However, if we were to break above the 0.71 level, then it could send this market much higher in more of a “buy-and-hold” type of attitude.

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