AUD/USD Price Forecast – Australian Dollar Continues to Press Higher

The Australian dollar has rallied a bit during the trading session on Tuesday again, as we are pressing the 0.74 handle. While this is not necessarily a major level, it will cause a little bit of an issue, but having said that I think it is only a matter of time before the market pulls back. Nonetheless, the pullback should be an opportunity to pick up a bit of value underneath. The 0.71 level underneath is massive support, that extends down to the 0.70 level under there. The 50 day EMA is sitting at the 0.71 level, so that of course offers a lot of potential support as well.

AUD/USD Video 02.09.20

You as we are getting a bit extended, and starting to give back some of the gains early in the North American session, it is very possible that we have gotten a bit overdone, so I look at this pullback as a potential buying opportunity, and a certain amount of patience will be needed in order to pick up as value, as sometimes we are paid to wait. Ultimately, some traders will be tempted to short the market, but at this point in time the intelligent play is to simply pick up value as it occurs, meaning buying the dips. In fact, I do not have a scenario where him willing to sell until we sliced through the 200 day EMA, which of course is closer to the 0.68 level. On the other hand, if we were to break above the 0.75 handle, that would be another major barrier coming down.

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