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AUD/USD Price Forecast – Aussie Pulls Back to Find Buyers Underneath

By:
Christopher Lewis
Published: Sep 17, 2020, 13:17 UTC

The Australian dollar has pulled back a bit on Thursday but found buyers underneath the sea continue choppy and sideways action.

AUD/USD

The Australian dollar has gone back and forth during the trading session on Thursday, as we initially fell but then found buyers yet again. We are in an uptrend so this should not be a huge issue to get your head around, but it is also worth pointing out that the last couple of candlesticks have shown long wicks to the upside, showing just how much there is in the way of resistance just above. Looking at this candlestick, it suggests that we are going to see a lot of back-and-forth action, due to the fact that we have seen the opposite action recently. All things being equal though, we are hovering around the 0.73 level, and then underneath there we have support at the 0.72 handle, and most certainly at the 0.71 level which extends yet another 100 pips. The 50 day EMA sits near the 0.72 level as well.

AUD/USD Video 18.09.20

To the upside, the market is likely to go looking towards the 0.75 handle, but it may take some time to get there because quite frankly the volatility in risk assets right now is starting to pick up a bit. Ultimately, the Australian dollar is somewhat insulated due to the fact that it is highly sensitive to the Chinese economy which is doing better, so that helps a bit, but right now it is difficult to get overly “risk on” as there are so many headwinds out there. I think at this point you are probably looking to buy short-term dips, but I am not looking for a huge move in the short term.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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