AUD/USD Price Forecast – Australian Dollar Showing Signs of Exhaustion
The Australian dollar initially tried to rally during Tuesday but gave back the gains to turn around and break below the 0.61 level. Ultimately, the Australian dollar is going to be highly sensitive to risk appetite and the global supply chain. Neither one of those are likely to be strong so I am not overly bullish on the Australian dollar. Beyond that, one would have to wonder whether or not this hasn’t been more or less a “dead cat bounce.”
AUD/USD Video 01.04.20
What’s even more interesting is that near the 0.6150 level we had recently seen a gap, and it seems to be offering resistance going forward. I do think that given enough time we should see more weakness, because quite frankly there’s no reason to think that suddenly the world is going to be a much simpler place to invest in. I think that we probably don’t melt down like we did previously, but I still think there are plenty of reasons to suspect that there is more negativity out there just waiting to be expressed.
This isn’t to say that the Australian dollar can’t rally, it’s just that we are starting to see signs of exhaustion after a bounce straight up in the air. Furthermore, we need to pay attention to the 0.60 level underneath, as it is a large, round, psychologically significant figure. That area could be very influential as well. To the upside, if we were to break above the 0.6250 level could open up a move towards the 0.65 level after that. At this point, we are about to make a significant move.
This article was originally posted on FX Empire
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