AUD/USD Price Forecast – Australian Dollar Continues to Face Same Barrier

The Australian dollar initially tried to rally during the trading session on Friday but gave back quite a bit of the gains as we got close to the 0.70 level. It is difficult to imagine going straight through there, especially when you are talking about the market going into the weekend, as the barrier has been so resilient that it is hard to imagine that everybody suddenly once the pile into the markets and wait to see how things open up on Monday.

AUD/USD Video 20.07.20

Having said all of that, I do believe that we will eventually find buyers again, so buying on the dips seems to be the best way to trade this market. The 0.68 level underneath is significant support, as we have seen buyers jump in from there and of course we also have the 50 day EMA crossing that level as well. All things being equal, I do think that eventually we break out, but we will have a lot of noise between now and then.

Ultimately, once we do break above the 0.71 handle though, that opens up the door to the 0.80 level, which would be a longer-term trend change. At this point, it looks like people are willing to step away from the market heading into the weekend, but I think next week there will be buyers jumping in and taking advantage of any value that appears on a dip. While I do not think global growth is suddenly going to explode, it seems to be all about the Federal Reserve at this point.

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