AUD/USD Price Forecast – Australian Dollar Pulls Back
The Australian dollar has pulled back a bit during the trading session on Friday after the jobs number came out as anticipated. Ultimately, I do think that we are in an uptrend that continues. If the market pulls back towards the 0.71 handle, I will be more than willing to jump into the Australian dollar as that begins a significant amount of support all the way down to the 0.70 level. With that being the case, I am looking to pick up value in the Australian dollar as I am against most other currencies against the US dollar.
AUD/USD Video 10.08.20
The Federal Reserve continues to prime the pump with more liquidity, and that drives down the value of the greenback over time. That is exactly what we are seeing here and unwinding of the massive dollar long position that we had seen over the last several years. This is a long term adjustment, and as long as we can stay above the 0.68 level, I believe that we have a strong shot at continuing much higher, perhaps reaching as high as the 0.80 level above which is my longer-term target. All things being equal, the 50 day EMA is starting to race towards the 0.70 level which of course will attract a certain amount of attention by itself.
None of this means that we get to the 0.80 level soon or easily, just that the level is our longer-term target. I have no interest in shorting this pair anytime soon, as is the case with many others.
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This article was originally posted on FX Empire
