AUSTRALIAN DOLLAR FORECAST: AUD/USD PRICE ACTION SURGES PAST 0.7000-MARK AS AUSSIE STRENGTH, US DOLLAR WEAKNESS PERSISTS
- Australian Dollar strength continues against its USD peer but fizzles out against the Yen
- AUD/USD price action has exploded nearly 250-pips over the last five trading sessions
- Aussie shorts capitulate as spot AUD/USD rallies above the 0.7000-price and blows out stops
The pro-risk Australian Dollar continues its relentless rally against its safe-haven USD peer. Spot AUD/USD now trades above the 0.7000 price level and positive year-to-date as markets achieve their v-shaped recovery.
AUD/USD PRICE CHART: 1-HOUR TIME FRAME (03 JUN TO 08 JUN 2020)
The latest stretch of Australian Dollar strength accelerated throughout Monday’s trading session after spot AUD/USD price action spiked above last week’s high. As the Bollinger Band expands, perhaps if the Aussie can continue its climb and find follow-through in the upcoming APAC session, spot AUD/USD prices might rocket past technical resistance posed by the 31 December 2019 intraday swing high.
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AUD/USD PRICE CHART: DAILY TIME FRAME (16 DEC 2019 TO 08 JUN 2020)
Nevertheless, this area poses a potential double-top pattern, which could stymie the Australian Dollar’s impressive ascent over the last several weeks. If major safe-haven currencies catch a bid, however, such as the US Dollar, there is potential for AUD/USD price action to claw back recent downside.
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Though the healthy bullish trend and upward-sloping 8-day exponential moving average look to provide a strong degree of buoyancy to the Australian Dollar against its USD peer. That said, the upcoming FOMC meeting scheduled for this Wednesday, 10 June at 18:00 GMT, presents considerable event risk and threatens to weigh heavily on the direction of AUD/USD.
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