The Australian dollar has rallied again during the week, breaking through the 200 week EMA before pulling back a bit. It is worth noting that the Aussie dollar has been very bullish for some time, and the fact that we pulled back from the 200 week EMA is not much of a surprise. Ultimately, I think that the market will find plenty of opportunities, but we will probably need to pullback in order to find them. I am especially interested in the 0.70 level, an area where we should see quite a bit of support.
AUD/USD Video 03.08.20
If we were to break down below there, the next major support level should be the 0.68 handle, an area that continues to see a lot of support based upon structure and of course the 50 week EMA. That being said, there should be plenty of buyers after a move like this, and people are itching to get involved that have not managed to. The greenback continues to get hammered against almost everything due to the Federal Reserve flooding the markets with currency.
A break above the candlestick for this past week of course is bullish but the Australian dollar has gone straight up in the air for so long that it is difficult to imagine that we simply do that. At the very least I think we need to consolidate, if not get that pullback I mentioned previously. The Aussie dollar has to worry about the Reserve Bank of Australia working against it, but quite frankly they are lightweights in comparison to the Federal Reserve, so we are going higher over the longer term.
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