AUSTRALIAN DOLLAR FORECAST: AUD/USD PRICE ACTION SURGES PAST 0.7000-MARK AS AUSSIE STRENGTH, US DOLLAR WEAKNESS PERSISTS
- Australian Greenback energy continues in opposition to its USD peer however fizzles out in opposition to the Yen
- AUD/USD worth motion has exploded practically 250-pips over the past 5 buying and selling periods
- Aussie shorts capitulate as spot AUD/USD rallies above the 0.7000-price and blows out stops
The professional-risk Australian Greenback continues its relentless rally in opposition to its safe-haven USD peer. Spot AUD/USD now trades above the 0.7000 worth degree and optimistic year-to-date as markets obtain their v-shaped restoration.
AUD/USD PRICE CHART: 1-HOUR TIME FRAME (03 JUN TO 08 JUN 2020)
The most recent stretch of Australian Greenback energy accelerated all through Monday’s buying and selling session after spot AUD/USD worth motion spiked above final week’s excessive. Because the Bollinger Band expands, maybe if the Aussie can proceed its climb and discover follow-through within the upcoming APAC session, spot AUD/USD costs may rocket previous technical resistance posed by the 31 December 2019 intraday swing excessive.
| Change in | Longs | Shorts | OI |
| Each day | -5% | 21% | 12% |
| Weekly | 6% | 6% | 6% |
AUD/USD PRICE CHART: DAILY TIME FRAME (16 DEC 2019 TO 08 JUN 2020)
However, this space poses a possible double-top sample, which might stymie the Australian Greenback’s spectacular ascent over the past a number of weeks. Nevertheless, if main safe-haven currencies catch a bid if market sentiment sours, there may be potential for the US Greenback to claw again current draw back and ship spot AUD/USD worth motion pivoting again decrease.
Advisable by Wealthy Dvorak
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Although the wholesome bullish development and upward-sloping 8-day exponential shifting common look to supply a robust diploma of buoyancy to the Australian Greenback in opposition to its USD peer. That mentioned, the upcoming FOMC assembly scheduled for this Wednesday, 10 June at 18:00 GMT, presents appreciable occasion threat and threatens to weigh closely on the route of AUD/USD.
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— Written by Wealthy Dvorak, Analyst for DailyFX.com
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