AUD/USD Price Forecast – Australian Dollar Sitting on Support Zone

The Australian dollar pulled back a bit during the trading session on Thursday, breaking below the 0.71 handle. The area between the 0.71 level and the 0.70 level continues to be crucial, and right now it looks as if it is a bit of a “zone of support.” Is because of this that I believe the Australian dollar may get a short-term pop, but now we have to pay attention to the previous uptrend line, which should now be resistance based upon market memory. Furthermore, we also have to pay attention to the 50 day EMA which did in fact offer resistance during the trading session on Wednesday, so that of course needs to be paid attention to.

AUD/USD Video 23.10.20

All things been equal though, we have recently broken down through a pretty significant trend line, so if we were to break below the 0.70 level, we would then make a fresh, new low, which of course is a very negative sign and would be threatening the 200 day EMA. This of course is an indicator that a lot of people pay attention to and it will be interesting to see what happens next due to the fact that the United States is looking to add massive stimulus while the Reserve Bank of Australia made it very clear recently that they are going to be loosening monetary policy at the November meeting.

It is probably more about forward guidance at that point, but clearly the Australian dollar is starting to lose some of it shine that it has had previously. At this point, I think we are looking at a scenario that is going to be choppy at best and probably range bound between 0.70 and 0.73 or so.

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