Yahoo Finance AUD/USD Price Forecast – Australian Dollar Continues to Show Weakness
The Australian dollar has broken down a bit during the trading session on Tuesday, to break down towards the 0.70 level. If we can break down below the 0.70 level, the market is likely to go looking towards the 200 day EMA. Breaking down below there allows the market to go down to the 0.68 handle. That of course is a very significant round figure and could kick off a larger move to the downside. Ultimately, a lot of this is going to come down to a lack of stimulus in the United States but we have also recently seen the Reserve Bank of Australia suggest that interest rate cuts are in fact coming, so that will weigh upon the Australian dollar as well.
AUD/USD Video 21.10.20
Ultimately, the market is likely to see a lot of selling on rallies, unless of course we were to somehow break above the 0.73 level. If we break above there, then it is likely that the overall uptrend should continue to go higher, perhaps reaching towards the 0.75 level. However, that is not my default position right now, so at this point it is likely that we will continue to see downward pressure. I do not know that it necessarily means that we are going to break down significantly, but it seems very likely that we are going to be negative in general. Ultimately, this is a market that will continue to be noisy and of course you have to keep in mind that the risk appetite is going to be a moving target. That being said, the more volatility that we get in other assets, the less likely this pair is to go higher.
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This article was originally posted on FX Empire
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