AUD/USD Weekly Price Forecast – Australian Dollar Showing Support Still

The Australian dollar pulled back initially during the course of the week, reaching down towards the 200 week EMA. However, we have bounced from there to form a nice-looking hammer and that of course suggests that we are going to try to continue to go to the upside. With that, the Australian dollar has been extraordinarily resilient, even as other currencies do not look as healthy against the greenback recently. That being said, I do anticipate that a move towards the 0.75 level will take a significant amount of momentum and effort, but it certainly looks as if it is what the market wants to do.

AUD/USD Video 14.09.20

To the downside, I believe that the 0.71 level should be rather supportive, extending down to the 0.70 level. At this point in time, the market is likely to continue to be a “buy on the dips” type of scenario, as the Aussie continues to attract a lot of inflow due to the Chinese economy strengthening, and of course the Federal Reserve out there printing greenbacks as quickly as they can. At this point, if we can break above the 0.75 level I think that opens up the possibility of a move towards the 0.80 level, but a bit of sideways action for several weeks would not be a huge surprise either, due to the fact that we have gone straight up in the air the entirety of the year so far, and could probably use a bit of a break in order to catch our collective breath. Remember, markets do not go straight up in the air forever.

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