The Australian dollar has rallied a bit during the trading session on Wednesday, as we continue to see a lot of bullish pressure. At this point in time I believe that the Aussie dollar is going to go looking towards the 0.80 level, but it may take a multiple leg approach. That is not a huge surprise though, because we have a lot to work through when it comes to the previous downtrend. All things being equal, the market is likely to continue to find buyers every time it dips, as the Federal Reserve continues to liquefy the markets. All things being equal, I am a buyer of dips and I recognize that with the FOMC coming out, that could probably cause a bit of volatility. I would love to see the Aussie fall as a result, because longer-term nothing will have changed.
AUD/USD Video 30.07.20
I believe there is massive support down to the 0.70 level, so it is not until we break down below the level that I would even start to worry about the uptrend. Ultimately, this is a market that is bullish for the long term, and I believe that we have much further to go, perhaps as high as the 0.80 level. Obviously, that is a longer-term call, but I do think that is where we end up given enough time. I do not have a scenario in which a willing to sell the Australian dollar unless of course something drastic happens over at the Eccles building, but the Federal Reserve is very unlikely to change its tone anytime soon.
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This article was originally posted on FX Empire
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