AUD/USD Price Forecast – Australian Dollar Pulls Back

The Australian dollar has initially tried to rally during the trading session on Tuesday but gave back the gains as we crashed back towards the 0.72 level. That is an area that will begin support extending down to the 0.71 handle, which then begins a support zone down to the 0.70 level. At this point, the Australian dollar is going to continue to benefit from any strength coming out of China, but at the same time we have rhetoric coming out of the United States about decoupling from China, so the “weak hands” will be jumping ship on what has been a very strong trend. Look at this as an opportunity to pick up the Australian dollar “on sale”, so a bounce is the first thing you should be paying attention to.

AUD/USD Video 09.09.20

Quite frankly, it is not until we break down below the 0.68 level that I would be a seller of this pair, because there are so many buyers underneath just waiting to take advantage of the massive trend that we have seen. With this, I do like the idea of buying dips, but I may wait for a daily candlestick in order to take the trade signal. I have course will keep you abreast as to what I see here at FX Empire, and will take this on a “day by day” basis. I do certainly want to go long and have no interest in shorting anytime soon, so for me it is just a matter of finding buyers jumping into the market that I would follow.

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