AUD/USD Price Forecast – Australian Dollar Bounces From Support

The Australian dollar pulled back during the trading session on Tuesday to show signs of weakness month the 0.75 level is the beginning of significant support and of course it is a psychologically important number. With that being the case, the market looks as if it is ready to continue going higher, as there is a massive amount of support all the way down to the 0.74 level. All things being equal, this is a market that I think continues to see buyers to try to push the Aussie to the upside. The 0.7750 level would be the initial target, perhaps even the 0.80 level if we get enough quantitative easing or dovish comments coming out of the Federal Reserve.

AUD/USD Video 16.12.20

At this point in time, I would anticipate a lot of noise between now and the Federal Reserve, but ultimately the upward trend it should continue. Participants are simply waiting to see whether or not the Federal Reserve will reduce the market yet again, which that is basically what it does most of the time regardless. With that being the case, it is likely that we continue to see plenty of interest in the market as stimulus should be coming from Washington DC as well, and therefore drive up demand for commodities, which of course the Australian dollar is highly sensitive to.

Pullbacks continue to offer value, and that is the only way to look at this market. To the upside we should continue to see plenty of interest but that does not necessarily mean that the move will be easy. After all, there are a lot of concerns out there right along with the idea of stimulus helping.

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