AUD/USD Price Forecast – Aussie Dollar Starts Week on The Back FootThe Australian dollar has fallen a bit during the trading session on Monday, as we may have gotten a little overbought in this currency pair.
The Australian dollar has pulled back a bit during the trading session on Monday to kick off the week on the back foot. That being said, the market looks very likely to find buyers underneath so I think this will be a nice short-term pullback that people can take advantage of. After all, the US dollar has been getting hammered against most currencies, and therefore a little bit of a reprieve would make sense. When you look at the US Dollar Index, we are bouncing from a major support level so it will be interesting to see whether or not we can get some type of recovery. I do not necessarily think that this is a longer-term recovery, but at the very least a bounce from the area that we are at in that market makes quite a bit of sense.
AUD/USD Video 12.01.2021
This of course has its effects felt over here as well, so ultimately, I think that the market will see a pullback that traders who are patient enough may be able to take advantage of. After all, the Australian dollar is in an uptrend based upon the idea of reflation around the world, so I do think this is a longer-term move. For what it is worth, the Commitment of Traders report is still net short of the Australian dollar, even though it has been rising for some time. In other words, it is possible that there may be plenty of people out there who have not jumped on the train yet and will be looking to do so as this is obviously a very bullish pair.
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