AUD/USD Price Forecast – Australian Dollar Rallies for Thursday

The Australian dollar initially fell during the trading session on Thursday but then turned around to show signs of life again as the Australian dollar continues to dance around the 50 day EMA. Ultimately, this is a market that has a lot of resistance above at the 61.8% Fibonacci retracement level, but you can also make an argument for a potential bullish flag. This is a moving target at this point, due to the fact that the market seem to be completely disconnected from economic reality. Unfortunately, that is the situation that we find ourselves in and at this point the question is whether or not we can make a “higher high.” If we do, then obviously that is a bullish sign and we will more than likely go looking towards the 61.8% Fibonacci retracement level again, and perhaps even the 0.65 handle.

AUD/USD Video 24.04.20

The market seems to be trying to figure out whether or not we can continue to see global growth, and although China is going back to work, the reality is nobody is buying their products. Demand has cratered, so one would have to believe that sooner or later the Australian dollar will feel the punch. The RBA is likely to continue to stimulate the economy as the Australian economy is entering its first recession in over 30 years. That being said, I do believe that we are going to get a selling opportunity somewhere between here in the 0.65 handle, but it is difficult to get overly aggressive to the downside as it continues to defy gravity.