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The Case for Further Upside in AUD/USD

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@forexbrokr
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Direct from the desk of Dane Williams.


The AUD/USD recovery has been nothing short of astounding and there's a case being made for further upside in AUD/USD.

After clearly holding the AUD/USD GFC lows, we last spoke about the Aussie being

The last time we spoke about AUD/USD, we highlighted the fact that the pair was sitting in pretty much what could be described as no man's land.

With the Aussie continuing to rip as the country looks to ease shut-down restrictions after handling coronavirus like a boss, the pair has now all but completely retraced the drop.

AUD/USD Daily:

As part of today's morning reading, I came across a really interesting article from Adam Button on ForexLive that I have to share - Why the rally in the Australian dollar will continue.

The pair seems to have just been tracking stock indices, benefiting from the money printing risk-on sentiment, Adam makes some good points around why the Aussie won't necessarily tank when the SPX inevitably turns.

Here's a nice snippet that sums up the high-level view of why a bullish bias on the Aussie may not be a crazy thing right now:

"Ask yourself: If I could be trapped somewhere for the next year, where would it be? Assuming New Zealand and Australia are open, they're a no-brainer. Money is thinking the same way.

On top of that, both countries are oriented towards China, which is also operating much more than Europe or North America so that could buffer the export shock."

Some food for thought.

That 66.70 daily level was the pre-coronavirus floor (and was retested perfectly before the huge drop).

If price can get back above and find support again, it could be like this whole shitstorm never happened.

Cray.

Best of probabilities to you,

Dane.


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