AUD/USD Weekly Price Forecast – Aussie Dollar Forms Negative Candlestick for the Week

The Australian dollar has rallied quite a bit during the week but has also given up a lot of those gains. By doing so, the market has formed a massive shooting star. This of course is a very negative sign, and therefore it is likely that we will continue to go back and forth as we have neutral candlestick proceeding this shooting star. The 0.71 level underneath is the beginning of massive support that extends down to the 0.70 level, so even if we do sell off a bit it is likely that we will find plenty of buyers underneath. After all, that was an area that was massive resistance previously.

AUD/USD Video 24.08.20

On the other hand, if we were to break above the top of the shooting star for the week, it is likely that we go looking towards the 0.75 handle, maybe even the 0.80 level after that. All things being equal, this is a market that is overextended so it makes quite a bit of signs that we need to go back and forth in order to build up the necessary momentum to finally make a bigger move.

We are looking at the vacation season right now, so that is also going to be a major factor in this market as well. Ultimately, I think we go back and forth for the next couple of weeks until traders come back from holiday, and then start putting big amount of money back into the market. With this, longer-term traders will probably be on the sidelines in the short term.

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