AUD/USD Weekly Price Forecast – Australian Dollar Rallies Significantly For The Week

The Australian dollar has broken higher during the course of the week, as the Federal Reserve has cut interest rates by 50 basis points. The question now is whether or not the Australian dollar can take advantage of it for a longer-term move? The EUR/USD pair has broken out to the upside and that signifies that perhaps there is going to be even continued US dollar weakness. At this point, I believe that the 0.67 level above in the AUD/USD pair will be significant resistance, but it’s likely that the market will try to take that out, and if the market can break above the zero point to 6775 level, I believe it’s only a matter of time before the Aussie starts to change the trend as well.

AUD/USD Video 09.03.20

If we can see a slowing of the coronavirus infection rate in Asia, then it’s possible that we could see the Australian dollar be a huge beneficiary as China is getting back to work. Remember, the Australian economy is highly levered to the Chinese economy, meaning that they supply a lot of the commodities that the Chinese use. Furthermore, we are bouncing around and what was the consolidation area for the financial crisis. In other words, we are far too oversold at this point to think that the downward pressure can last forever, so having said that it’s likely that longer-term “smart money” is already starting to build up a position. Ultimately, I do believe that buying dips will work for shorter-term traders and building up a larger position for a longer-term trader could work out in the same direction if you build slowly.