AUD/USD Weekly Price Forecast – Australian Dollar Continues to Grind
The Australian dollar has been going back and forth over the week as we test a large area of noise. This was an area that we had cut back from quite a bit in the past. The question now is whether or not we can maintain this kind of dynamic. I don't know we can, so don't be at all surprised if you've been trading sideways for a couple of weeks, to say the least. I believe that the 0.70 level below will provide significant support and I expect many buyers to return if we somehow drop to that level.
AUD / USD video 08/10/20
The Federal Reserve continues to flood the market with greenbacks, and at this point it is evident that the US dollar will be tailed for the long term. Ultimately, I think you can buy the Australian dollar on dips, but I think we may have to do something else to get through that range right over it. Ultimately, I think it will happen, but you can see how parabolic that move was, and those types of moves can't go on forever.
With that, I like the idea of adding value instantly, but I also recognize that a simple buy at this high level with huge positions is a great way to lose money. If we can break past the top of the week's candlestick it would be another sign that we will eventually break out to the top, but obviously we still have a lot to do to get to the top. In the longer term, I firmly believe that we will reach the 0.80 level.
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This article was originally published on FX Empire
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