AUD/USD Weekly Price Forecast – Australian Dollar Continues to Stall
The Australian dollar has gone back and forth during the week, as we have shown a very neutral candlestick. The 200 week EMA has offered a significant amount of resistance for the third week in a row, but quite frankly I think at this point what we are paying attention to is the fact that the market is a little overextended. Furthermore, it is also vacation season and that tends to bring down a lot of the momentum. With that being the case, it does make sense that we will see sideways action and we could even see a little bit of a pullback.
AUD/USD Video 17.08.20
The 0.70 level should be crucial, but if we do break above the top of the shooting star from the previous week that opens up the move to the 0.75 handle, and then possibly even the 0.80 level after that. All things being equal, the Federal Reserve continues to flood the market with greenbacks and therefore I think we will continue to see the Australian dollar rallied by default. Furthermore, the Australian dollar is highly correlated gold, which of course has been on fire as of late.
Expect a lot of choppiness ahead, but quite frankly I still favor the upside as breaking above the 0.70 level was a significant milestone that the market of course will pay quite a bit of attention to. All things being equal, the US dollar looks as if it has changed its overall trend finally, and then should continue to play out here as well as many other currency pairs.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
Natural Gas Price Prediction – Prices Surge and Continue to Trend Higher
Gold Price Prediction – Prices Ease and Settle Down Nearly 5% for the Week
Silver Price Forecast – Silver Markets Pulled Back to End Out Week
Gold Price Forecast – Gold Markets Pulled Back Slightly After Nice Bounce
Crude Oil Price Forecast – Crude Oil Markets Do Very Little on Friday
