AUDUSD to Extend Rally Next Week Following Breakout

Written by Justin Bennett

Trusted by 100k monthly readers

Last Updated July 24, 2020

Forex trader since 2002

Written by Justin Bennett 

Forex trader since 2002

100k monthly readers

Updated July 24, 2020


AUDUSD has broken out this week along with its New Zealand counterpart, which I wrote about earlier this week.

Tuesday’s close above 0.7030 marks a significant moment for AUD.

We have to go back to 2019 to find the last time the currency traded above that level.

And a view from the weekly chart shows why 0.7030 is so significant.

AUDUSD weekly time frame
AUDUSD weekly time frame

The way AUDUSD recovered so quickly following the March selloff is indicative of the pair’s strength of late.

Last week’s close above 0.7030 is just one more indication that the market wants to head even higher.

You can also see how AUDUSD is testing the 0.7160 resistance area.

It’s going to take a daily close above that to extend gains and open the door to the 0.7320 region.

Alternatively, a rotation back to 0.7030 could produce a buying opportunity.

That said, I’m also interested to see how this week closes, as I mentioned above.

The daily break this week looks good, but a weekly close above 0.7030 would help solidify the breakout.

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AUDUSD daily 7.24.20
AUDUSD daily time frame

About the author

Justin Bennett is a full-time trader and educator who teaches Smart Money Concepts and clean price action without the noise.

He focuses on market structure, liquidity, imbalances, and high-time-frame context to help traders understand what price is actually doing and why.

Justin has been trading for over a decade, publishes weekly market breakdowns, and has helped thousands of traders simplify their approach and trade with more confidence. ...Read More


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