AUD/USD Weekly Price Forecast – Australian Dollar Tests 200 Week EMA

The Australian dollar has rallied during the week to reach towards the 200 week EMA, and that does in fact suggest that perhaps we are going to see a certain amount of pressure to the downside. Furthermore, it is also pulling back from an uptrend line over the last several weeks, so I do think that a rollover is possible. This does not mean that we are suddenly going to see the markets fall apart, rather that I think it is likely that we are going to consolidate in this area.

AUD/USD Video 05.10.20

The US dollar is picking up a bit of a bid in general, so it should not be a surprise to see that the Aussie might slump a bit. However, the Australian dollar is one of the strongest currencies over the last several months, so if you are looking to buy the US dollar, you probably need to look elsewhere. You will have an easier time by the US dollar against the Canadian dollar, New Zealand dollar, Euro, Pound, and so on.

The Australian dollar is buoyed by the Chinese economy, and the whole idea of an Asian recovery. China has been printing better numbers as of late, so that continues to help the Aussie as well. Further exacerbating the difficulty of the Australian dollar falling is the gold market rallying, which it will almost certainly do eventually if we get some type of major “risk off scenario.” This does not mean that you buy the Australian dollar in this scenario, it just means that you do not bother shorting it because there is easier money to be made.

For a look at all of today’s economic events, check out our economic calendar.