AUD/USD Price Forecast – Australian Dollar Rebounds

The Australian dollar has rallied a bit during the trading session on Tuesday, breaking above the 0.71 level. That is an area that was the top of major interest in the market that extends down to the 0.70 level. At this point, the market is likely to continue to bounce from here, perhaps reaching towards the 0.73 level given enough time. The fact that we have broken above the 0.71 level does tell me that the Aussie at least is going to stay somewhat resilient, so that continues to support my thesis that you should not be shorting this market, even if the US dollar strengthens. In fact, it looks to me like people are starting to short European indices, and perhaps buying Asian ones.

AUD/USD Video 30.09.20

Looking at this chart, I do recognize that the 50 day EMA above my cause some short-term resistance but given enough time I fully anticipate that we are likely to see trouble in the short term. If we can break above the 50 day EMA, then it allows this market to go much higher. Until then, I suspect that it is more or less a short-term “buy on the dips” type of scenario. The candlestick of course is rather good looking for the buyers, so I still think that there will be plenty of buyers willing to get involved on these dips. In fact, as long as we can stay above the 0.70 level, I think that this is a market that you can only be long of or on the sidelines.

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