AUD/USD Price Forecast – Australian Dollar Recovers

The Australian dollar has recovered a bit during the trading session on Wednesday, showing signs of wanting to continue the upward proclivity that it had shown. That being said, there has been an extraordinary amount of damage when it comes to risk appetite and confidence lately, so this of course will have people worried about jumping “all in” when it comes to these risk assets. That being said, the Australian dollar does have the benefit of being highly sensitive to the Chinese economy, which is getting better.

AUD/USD Video 10.09.20

From a structural standpoint it looks as if the Aussie should be supported near the 0.72 level, and of course the 0.71 level which has been a major scene of support previously. The 50 day EMA is right in the middle of all of that, so it is likely that we continue to see interest in that general vicinity. Because of this, I am not interested in selling the Aussie dollar, just that I would be a bit cautious about position sizing in a very uncertain world right now.

The US dollar is oversold against most currencies, so the question is not so much as to whether or not we can pull back, but whether or not the US dollar finally regains its favor? It is difficult to imagine with the Federal Reserve doing what it is doing, but at the end of the day, if there is a sudden “risk off move”, that will show itself here as well as other markets. I am cautiously optimistic.

For a look at all of today’s economic events, check out our economic calendar.