AUD/USD Price Forecast – Australian Dollar Pulls Back

The Australian dollar has initially tried to rally during the trading session on Friday, but then pulled back a bit to show signs of exhaustion. Ultimately, this is a market that is pulling back based upon a “risk off” type of move due to weaker than anticipated PMI numbers coming out of the European Union. At this point, people start to look at the possibility of the global economy slowing down yet again and therefore people jumped into the US Treasury markets for safety. At this point, I think that there is also a bit of profit-taking going into the weekend, so therefore it makes sense that this was more or less a ho-hum day.

AUD/USD Video 24.08.20

Underneath, the 0.71 level begins significant support that extends down to the 0.70 level. Ultimately, this is a market that should continue to find plenty of buyers underneath and continue to find more of a “buy on the dips” mentality. The 50 day EMA is slicing through the support level, and therefore that should also offer quite a bit of support as well. Longer-term, gold has been very strong performer, and that of course moves the Aussie dollar as well.

Ultimately, I do like the idea of going to the upside and try to reach towards the 0.75 level, followed by the 0.80 level. Having said that, I would not read too much into the Friday candlestick, other than the fact that people were going home for the weekend. To the downside, even if we did break down below the 0.70 level, then the market could go down to the 0.68 level which should be massive support not only due to structure, but also the 200 day EMA.

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