AUD/USD Price Forecast – US Dollar Looking for Support Just Below

The Australian dollar has gone back and forth against the US dollar during the trading session on Wednesday as we have reached towards the 0.71 level. This is an area that extends support down to the 0.70 level, so I do believe that it is only a matter of time before we bounce. Furthermore, most of what we are looking at here is a simple giving back of an oversold condition when it comes to the greenback. With that being the case, I like the idea of buying these dips and I do think that eventually we will go much higher. Yes, we are clearly oversold when it comes to the greenback but longer-term the Federal Reserve continues to cause major issues with the value of the greenback as they flood the market with more dollars.

AUD/USD Video 13.08.20

Ultimately, the Australian dollar also is highly correlated to the gold market which of course is rather interesting considering that the Aussie dollar did not collapse during the trading session on Tuesday when the gold market dropped roughly $100. That shows real resiliency as far as I can tell so I do think that it is only a matter of time before the buyers show back up. The 50 day EMA also sits just below the 0.70 level, which can also cause certain support. At this point in time, I do not have any interest in shorting the Australian dollar, but we could see a lot of back and forth in the meantime.

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