AUD/USD Price Forecast – Australian Dollar Continues Sideways Attitude

The Australian dollar initially dipped a little bit during the open on Monday, but then turned around to gain as we went sideways. The 0.72 level continues to cause short-term issues, but at the end of the day it is only a minor blip on the radar. The market has been consolidating with more of an upward tilt for some time, and the fact that we are resiliently rejecting selling pressure suggests to me that we will eventually break out to the upside. If and when that happens, the 0.7250 level will be the initial target, followed by the 0.73 level. Given enough time, I anticipate that this market probably will go looking towards the 0.75 level, but it is going to take some type of catalyst for that to happen.

AUD/USD Video 25.08.20

The potential catalyst could be Jerome Powell speaking later this week and depending on how dovish he sounds about the US dollar and the Federal Reserve, that could have people shorting the greenback against everything, including the Australian dollar. If that is going to be the case, then later on this week we could see a bit of upward mobility. To the downside, I believe that the 0.71 level still offer support that extends down to at least the 0.70 level. The 50 day EMA is slicing right through that area as well, and clearly, we have a strong uptrend over the last several months that should continue to help the psychology of buying this pair as well. Dips continue to offer buying opportunities so far as I can see.

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