AUD/USD Weekly Price Forecast – Aussie Dollar Continues to Look SluggishThe Australian dollar has initially tried to rally during the week, but we have pulled back a bit to show that the market is not quite ready to continue higher.
The Australian dollar has gone back and forth over the last couple of weeks, and at this point in time it is likely that the market will continue to see a lot of back and forth in this general vicinity due to the fact that we had rallied so drastically. In fact, when you look at the chart to say that it is overdone is an understatement. The 200 week EMA underneath continues to offer short-term support, but I think we are more likely to go looking towards the 0.70 level underneath given enough time. Do not get me wrong, I am not saying that we have to do that but if we make a bigger move it would make more sense to pullback due to the fact that it has been a vertical climb.
AUD/USD Video 21.09.20
I also believe that a pullback is probably healthy, so at this point in time if I start buying the US dollar against multiple currencies, the Australian dollar may not be one of them. At the very least, we need to see this market grind sideways in order to work off some of the excess froth in the market and stabilize a bit. Quite frankly, the market cannot go straight up in the air forever, so with that in mind it needs to do some work here. Quite frankly, if the market went straight up in the air from here, I would become even less interested in buying due to the fact that this type of momentum cannot be kept up forever. Looking at this chart, the last couple of weeks have shown a major area of indecision.
For a look at all of today’s economic events, check out our economic calendar.