AUD/USD Price Forecast – Australian Dollar Continues to GrindThe Australian dollar has initially tried to rally on Friday but has given back the gains to roll over again. But this is a market that is still in an uptrend.
The Australian dollar initially tried to rally during the trading session but gave back the gains in order to show that the market is not ready to take off to the upside. Quite frankly, I think we continue to grind sideways in general, as the Australian dollar has the benefit of being attached to the Chinese economy, but at the same time we are starting to look at the US dollar through the lens of perhaps more of a “risk off” type of marketplace, and that does favor the US dollar against most currencies. However, if you are looking to take advantage of a sudden surge in US dollar strength, this is not the place to do it. This is because China has such a major influence on Australia, and China is starting to show signs of life again.
AUD/USD Video 21.09.20
With that in mind, I believe that the market is going to continue to reach towards the 0.71 handle underneath for support, that extends all the way down to the 0.70 level. However, to the upside the 0.74 level offers resistance, and most certainly the 0.75 level will offer resistance. I think we probably go back and forth in general, so if you are a range bound trader this might be a market you are interested in. All of that being said, we are very much in an uptrend still, so I do prefer buying dips more than selling rips, but at this point in time it looks like we are trying to define some type of major rectangle.
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