AUD/USD Price Forecast – Australian Dollar Running Into ExhaustionThe Australian dollar has shot higher during the trading session on Thursday but looks as if it is running into a bit of trouble near the 0.72 handle.
The Australian dollar has rallied again during the trading session but seems as if it is struggling to capture the 0.72 handle with any type of solidity. At this point, we are a little bit over bought in the short term so it would not be a huge surprise to see a short-term pullback. You can also make an argument that we have just tested the previous uptrend line and failed, so that of course is something worth paying attention to.
AUD/USD Video 02.10.20
Ultimately, this is a market that has been very resilient against the US dollar, so it is not a huge surprise to see that we got overbought as well. Keep in mind that the Australian dollar is highly levered to the Chinese economy so that of course helps the situation. I do think that given enough time we are probably looking at the market simply behaving the same way the rest of the market does when it comes to the greenback.
I am not a big fan of shorting this pair, at least not until we break down below the 0.70 level. I do think that given enough time we could make that move but it is probably going to be easier to buy the US dollar against other currencies such as the Euro, Pound, etc. With that being said, expect a lot of noise but if the US dollar suddenly gets a serrated, this is probably the currency pair that you want to be involved in, due to the fact that it has been so strong.
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