AUD/USD Weekly Price Forecast – Australian Dollar Pulls Back After Trying to Rally

The Australian dollar has shown itself to be a bit overdone during the week, as we tried to break above the 0.74 level, but it seems as if gravity finally took hold. There is a massive amount of support underneath though, so you should keep that in mind. I think that the market will continue to see buyers near the 0.71 handle, so at this point in time I think it is only a matter of time before the buyers come back and pick up value. The 0.71 level is massive support that extends down to the 0.70 level, so until something changes, I think we simply buy the dips.

AUD/USD Video 07.09.20

Longer-term, I believe that the market is going to go looking towards the 0.75 level above, which is my longer-term target, but I also think that we could go as high as the 0.80 level, and therefore I am more of a “buy-and-hold” type of trader when it comes to the Aussie, but I recognize that there is a better entry underneath, so I would look for that if I was not already invested. A break down below the 0.70 level could open up a move down to the 0.68 level, but I would expect even more support in that region.

At this point, I have no interest in selling the Australian dollar, at least not yet. Granted, the most recent move over the last several months has been somewhat parabolic in overdone, so pullback does make quite a bit of sense as momentum needs to be built back up.

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