The Australian dollar has rallied significantly during the week to break above the 0.71 level initially, but then pulled back a bit as perhaps we need to build up the necessary momentum to go higher. Regardless, it is obvious that there is a lot of support for the Aussie and the momentum is clearly to the upside longer term. The 0.70 level underneath should be massive support going forward, especially at shorter-term charts. If we can break above the top of the weekly candlestick from this past week, we should go much higher, perhaps reaching towards the 0.75 handle. Longer-term, I believe that this market is likely to go towards the 0.80 level after that.
AUD/USD Video 27.07.20
A pullback from here could find plenty of buyers near the 0.70 level considering that there was so much pressure underneath that, and the market has clearly done a lot of work to get rid of any selling in that area. The Australian dollar is benefiting from the Federal Reserve working against the value of the US dollar will continue to be a major driver of this pair, so I am a buyer of dips. Longer-term, I believe that we will hit the 0.80 level, but we could be talking about a move that takes until next year to actually occur. Remember, when it comes to risk appetite a lot of times the market will “take the stairs higher but take the elevator down.” All things being equal it is likely that the market should offer plenty of buying opportunities. I am not interested in shorting this pair.
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This article was originally posted on FX Empire
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