AUD/USD Price Forecast – Australian Dollar to Continue Consolidating
The Australian dollar rallied during the trading session on Tuesday but gave back a bit of the gains. By doing so, the market looks very likely to grind sideways at the very least. I do believe that there is a significant amount of support underneath that extends down to the 0.70 level, so it is worth paying attention to. I believe at this point in time, the buyers would be very interested on dips, as the 50 day EMA comes into play and of course it is an area that has been crucial in the past.
AUD/USD Video 05.08.20
From a longer-term standpoint, I believe that the Australian dollar may go looking towards the 0.80 level and it is most certainly a currency that has seen a massive shift in attitude. With that being the case, I believe that buying on the dips continues to work, but we have gotten a bit ahead of ourselves as of late. This currency pair is benefiting from the Federal Reserve working against the value of the US dollar by doing massive amounts of monetary policies.
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With this being the case, I do believe that we go higher over the longer term, and the unwinding is something that could take quite some time. To the downside I believe that there is also supported at the 0.68 handle, and that is essentially my “floor in the market” at this point in time. If we were to break down below there, then I would consider shorting. Until then, I have no interest in doing so.
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