AUD/USD Price Forecast – Aussie Dollar Continues Sideways Action

So far during the day on Wednesday, the Australian dollar has not done very much. However, the previous candlestick did indicate that perhaps we are going to see a bit of momentum and follow-through, which of course is something worth paying attention to. With that being the case, I think it is only a matter of time before we reach towards the highs again, closer to the 0.7275 handle. Breaking above their opens up the possibility of a move towards the 0.73 level, followed by the 0.75 handle.

AUD/USD Video 27.08.20

Longer-term, I think the Australian dollar goes even higher, especially if we can get good economic news globally. If we can get some type of hopeful headlines involving the pandemic, that would be a massive boost for risk assets, including the Australian dollar. To the downside, I believe that there is a significant amount of support near the 0.71 handle the continues to come into play, extending down to the 0.70 level. The 50 day EMA slices through this to levels and therefore I think it is even more supportive than it had been in the past.

I like the idea of buying on the dips, but with Jerome Powell speaking on Thursday we may get a little bit of volatility. Longer-term though, I do not have any interest in shorting this pair until we get below the 0.68 level, and even then, I will have to see how the world is looking at that point in time. The 200 day EMA is in that same area and of course it was structural support previously so I am giving the Australian dollar quite a bit of time and leeway, because I do think that this move to the upside is something that will continue to extend.

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