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AUD/USD Weekly Price Forecast – Australian Dollar Runs Into Resistance at Big Figure

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·2 min read
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The Australian dollar has initially broken above the 0.70 level during the week but then was repelled as we have not been able to break above the 0.71 handle, which is my signal to start buying for a longer-term move. Until then, I have to assume that we are either going sideways or breaking down. Quite frankly, the market is overbought and has been for some time. Now we have to ask a lot of questions of the Australian dollar and as to whether or not it can continue to show this type of strength.

AUD/USD Video 15.06.20

Looking at this chart, if we break down below the bottom of the weekly candlestick, then the market goes looking towards the 0.6675 level, and then perhaps down to the 0.65 level. At this point in time, the market is looking highly likely to continue going lower, which would be an extremely negative move as it would show a complete rejection from above. We are in a downtrend, and of course there are a lot of things out there that could cause major issues. However, it should be noticed that Friday is starting to show signs of support again, so this tells me that what we have is more or less a lot of consolidation and noise.

I anticipate that we need to make some type of decision sooner or later, but we could hang out in this general vicinity in the next couple of weeks, until we get some type of decision as to whether or not the risk appetite continues, but right now it clearly looks like we are still asking the question.

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This article was originally posted on FX Empire

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