AUD/USD Price Forecast – Australian Dollar Continues Breakout

The Australian dollar has rallied a bit during the trading session on Wednesday, as we are well above the 0.71 handle. Ultimately, I think that the market is ready to go much higher, as the Australian dollar is benefiting from the Federal Reserve out there flooding the markets with US dollars. This is more of an anti-US dollar move than anything else, because quite frankly the demand for commodities will only be exacerbated by the US dollar dropping in value. That helps the Aussie dollar, but the fact that it is not the greenback helped it just as much.

AUD/USD Video 23.07.20

Looking at this chart, we had broken out of an ascending triangle which of course is a bullish sign, so that is another reason to be looking to the upside. Longer-term I believe that the Australian dollar goes looking towards the 0.80 level, which of course is a large, round, psychologically significant figure. With that being said I think that we are probably going to look at this as the beginning of something rather special, and that we will eventually go looking towards an even bigger move if things continue the way they are.

Do not get me wrong and give you 100 reasons why the Aussie should be following, but quite frankly the Federal Reserve is the biggest game in town and therefore it is the only thing that matters. Buying on dips continues to be the best way going forward, looking for value as we will obviously have the occasional pullback that offers those opportunities.

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