AUD/USD Price Forecast – Australian Dollar Trying to Break Out

The Australian dollar has rallied a bit during the trading session on Thursday, as we await the Jerome Powell speech. Depending on what the market receives, this could have a drastic effect on where this pair goes. If he makes the market happy with plenty of stimulus stock, then this market will almost undoubtedly take off to the upside although a certain amount of this has already been priced in. However, if he disappoints then this market could pull back towards the 0.71 handle, the beginning of a significant support level.

AUD/USD Video 28.08.20

Speaking of that support level, I believe it extends down to the 0.70 level. In other words, it is more or less a 100 point “zone of support” sitting underneath. Breaking down below there would open up the possibility of moving down to 0.68, but I think it is much more likely that we see this market rally from this general vicinity and go looking towards the 0.75 handle first. The US dollar continues to get work against by the central bank, and I do not see that changing in the short term.

The massive recovery that we have seen in the Australian dollar of course has caused this pair to sit here for a while, which makes perfect sense because a market cannot go in one direction forever. However, the longer we sit here the more likely traders are going to be comfortable jumping into the market as we kill a bit of time. It is not until we break down below the 0.68 level that I become concerned about the Australian dollar, so in other words, I am not even think about shorting.

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