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AUD/USD Price Forecast – Australian Dollar Continues to Flex Muscles

Christopher Lewis

The Australian dollar has rallied during the trading session on Tuesday again, taking advantage of support just below. We have broken above the top of the inverted hammer from the previous session, and therefore it does suggest that we are going to continue to see strength in the Aussie. Pullbacks continue to offer value, so it is most certainly something that you should be paying attention to. I believe at this point the Australian dollar will go looking towards the 0.72 level, followed by the 0.7250 level. After that, then we have a breakout on our hands.

AUD/USD Video 12.08.20

The 50 day EMA currently sits at the 0.70 level, which I believe is the “floor” of the trend at the moment. This is most decidedly an uptrend and as long as the Federal Reserve is willing to flood the market with greenbacks, it does make sense that the US dollar would lose value. In an uptrend you will occasionally have a pullback that you need to look at those as value opportunities. You are picking up the Australian dollar “on the cheap”, which of course is the best way to make money in the market. I believe that the longer-term trade is coming, and that could send the Australian dollar as high as the 0.80 level above. That is not to say that we are getting there soon, just that it might be the destination before this is all said and done.

You should also keep in mind though that it is summertime and therefore the moves tend to be a little less impulsive, so keep in mind that this could be a bit of a grind higher more than anything else.

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

This article was originally posted on FX Empire

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