AUD/USD Weekly Price Forecast – Australian Dollar Breaks Out

The Australian dollar has rallied rather significantly during the course of the week, especially on Friday as the US dollar is getting absolutely pummeled. With that being the case, it does make sense that we continue going towards the 0.75 handle, followed by the 0.80 level. Pullbacks at this point in time should continue to be buying opportunities as there is so much strength and the Aussie and has been for some time. I think at this point, the 0.71 level is now the “floor” in the market and breaking below there seems extraordinarily unlikely.

AUD/USD Video 31.08.20

This does not mean that the market is necessarily going to go straight up in the air, far from it. However, the direction has been confirmed by the action and I believe at this point it is very obvious that this is a market that cannot be shorted. Look for a pullback, take advantage of that pullback, and ride this trend as long as you can. There will be the occasional hiccup along the way, but I do believe that it is only a matter of time before we get continuation.

After all, we had just been a month in the same area and Jerome Powell during his speech on Thursday made sure that we broke out to the upside. With the Federal Reserve doing absolutely nothing to say the dollar anytime soon, this is a trend that should continue to have legs going forward. Entries are probably best done on the four hour chart for longer-term traders, but clearly the weekly candlestick shows you the overall attitude of the market, and there is no point in fighting it.

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