AUD/USD Price Forecast – AUD Continues to Teeter Towards Break Out

The Australian dollar has pulled back a bit during the trading session on Friday, as the 0.78 level continues to offer a little bit of resistance. The 0.78 level being broken to the upside would open up the possibility of a move looking towards the 0.80 level. Ultimately, this is a market that I think continues to see buyers on dips, and the 50 day EMA underneath should offer a significant amount of support. Furthermore, the 0.75 level will also be supportive as well. In other words, look at pullbacks as potential buying opportunities. Because of this, I think that there will be plenty of opportunities to get long the Aussie yet again.

AUD/USD Video 15.02.21

Remember, the Australian dollar is highly sensitive to the commodity markets, and the idea of the “reflation trade.” As long as there is still stimulus out there and people betting on the idea of the vaccine opening up economies, the Australian dollar should have a bit of a bid underneath it. I do recognize that the 0.80 level above will be very difficult to overcome anytime soon, but if and when we do get above there the Aussie dollar will then become a “buy-and-hold” asset for the foreseeable future. The 0.80 level is massive in its implications on the monthly chart, so it is most certainly something to pay close attention to if we get above there. I have no interest in shorting the Aussie anytime soon, at least not until we break solidly below the 0.75 handle, and maybe even the 0.74 handle after that. I believe choppy but bullish behavior is what you can expect.

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