AUD/USD Price Forecast – Australian Dollar Testing Major Figure

The Australian dollar has initially tried to rally during the trading session on Friday, but then broke down to slice through the 0.60 level. At this point, the 0.60 level will attract a lot of attention, meaning that the market will probably continue to see noisy behavior. If we can break down below the lows of the Friday session, then it’s likely that we could go looking towards the 0.58 handle given enough time. The alternate scenario of course is that we turn around a break above the top of the candlestick for the trading session of Friday, and that could send this market looking towards the 0.62 handle.

AUD/USD Video 06.04.20

Looking at this chart, you can see that the 61.8% Fibonacci retracement level has offered significant resistance. The “golden ratio” will of course attract a lot of attention and the fact that we have pulled back from there suggests that the downtrend could very well continue. However, the 0.60 level is psychologically important up to pay attention to. This is why I don’t just jump in and start shorting right away. I need a significant break down below that level on a daily chart to become comfortable shorting. On the other hand, if we break above the highs made earlier this week, that opens up the door to the 0.65 handle above which should be significant. All of that being said though, treasury markets are attracting a lot of money, and that should continue to put downward pressure on this pair.

This article was originally posted on FX Empire

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