AUD/USD Price Forecast – Australian Dollar Breaks Out

The Australian dollar has broken higher during the trading session on Tuesday as we are seen the US dollar being sold off in general. Ultimately, this is a market that should continue to see buyers come in as the US dollar is suffering at the hands of the Federal Reserve. Ultimately, this is a market that I think will continue to find plenty of buyers based upon the US dollar falling, not necessarily because everybody wants to on the Australian dollar. Having said that, the Aussie dollar is highly sensitive to the gold markets and of course China, so that also gives us a little bit more of a boost than some other currencies.

AUD/USD Video 19.08.20

The pair has been extraordinarily bullish, and many continue to struggle just a bit in this general vicinity, but clearly you cannot be a seller. The market looks likely to continue to see a lot of buying on the dips, because quite frankly the US dollar cannot seem to get out of its own way. As long as the Federal Reserve floods the market, it is difficult to imagine a scenario where the US dollar will strengthen more than the occasional pullback.

With this, I look at pullbacks as potential buying opportunities. The market then will be offering value, and it is worth noting that the 50 day EMA is sitting at the 0.70 level, an area that of course has a certain amount of psychological importance built in. With this, it looks like we are getting precariously close to starting our next phase higher.

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