AUD/USD Price Forecast – Australian Dollar Consolidating

The Australian dollar has rallied a bit during the trading session on Monday to kick off the week in more of a positive tone. That being said, we are still well within the consolidation area between 0.70 and 0.71 that I have been talking about quite often for a couple of months now. If we were to break down below the 0.70 level, the Australian dollar would more than likely go looking towards the 200 day EMA which is closer to the 0.69 level. On the other hand, the market breaks above the 0.71 handle, then it is likely to attempt to reach towards the 0.73 level.

AUD/USD Video 29.09.20

The Australian dollar is a bit of an outlier, considering that it has been so much stronger against the US dollar than most of the other major currencies. With that being the case, if you see this pair falling, there is probably more momentum to be had against the Euro, the Pound, or even the Canadian dollar. If we do break down here, underneath the 200 day EMA is the 0.68 level that could offer support as well. Keep in mind that the Australian dollar is highly levered to the Chinese economy, so that of course helps as well. With the benefit of growth in China, the Australian dollar is more often than not going to be much more resilient than some of the other major currencies, so at this point I look at this as a “long only” type of trade, or I can also use it as an indicator window by the US dollar against other currencies.

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