AUD/USD Price Forecast – Australian Dollar Continues to Reach Towards Support

The Australian dollar has pulled back a bit during the trading session on Thursday as we continue to see a bit of a recovery. Ultimately, this is a market that will continue to see a lot of buyers underneath, as the market is most certainly in an upside type of attitude. Having said that, the market is going to continue to be bullish longer term, as we see the 50 day EMA crossing the 0.70 level, which will cause a significant amount of support.

AUD/USD Video 21.08.20

I believe that there is a bit of a zone underneath that extends down to the 0.70 handle but starts at the 0.71 handle. With all that being said, I do think that we will get a nice buying opportunity, but we may need to drop a little bit before more buyers jump back in. Ultimately, this is a market that will see plenty of value hunters given enough time, especially as the Federal Reserve continues to flood the market with greenbacks.

Adding even more potential bullish pressure is the fact that the Australian dollar is quite often linked to the gold markets, which of course have been very bullish as of late. Ultimately, I believe that the market is one that you cannot short, because even if we break down below the 0.70 level, we also have quite a bit of support underneath at the 0.68 handle. Given enough time, I believe that we go higher, perhaps reaching towards the 0.75 level above, which of course is a large, round, psychologically significant figure.

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