AUD/USD Price Forecast – Australian Dollar Continues to Levitate

The Australian dollar is flirting with breaking out for a longer-term trend change. That being said, there are a slew of problems out there that could work against it, so quite frankly I am a bit cautious about going long here. What I need to see is a daily close above 0.67 to be convinced that we are going to continue to see upward pressure. It is kind of astonishing if you think about it, as the US/China trade situation deteriorates, this will certainly have a negative effect on the Australian dollar. However, it does not seem to be something that people are willing to pay attention to at the moment, but when they do, I suspect that could cause a lot of economic pain.

AUD/USD Video 29.05.20

If we were to break down below the candlestick from the Wednesday session, that turns that candlestick into a “handyman” which also had formed right at the 200 day EMA, a very bleak and negative sign to say the least. However, if we get that breakout to the upside and the daily close above the 0.67 handle, it is highly likely that we go looking to the 0.70 at the very least, perhaps even higher than that. That being said, the market looks extraordinarily stretched, but I have thought that for a couple of weeks to be quite honest. The question now is whether or not we can continue to push higher? So far, it certainly has been resilient, but one would have to think that this rally is getting “long in the tooth.”

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