AUD/USD Price Forecast – Australian Dollar Breaking Out

The Australian dollar has rallied during the trading session on Wednesday as more of a “risk on” type of trade has come to the forefront. Ultimately, think this is a market that will continue to be a “buy on the dips” type of situation unless of course we get above the 0.75 handle, which is a large, round, psychologically significant figure. Ultimately, I do think that we get above there and it has been clear that no matter what happens, it seems as if the Aussie wants to go higher.

AUD/USD Video 10.12.20

This does not mean that we will get the occasional pullback, but those should end up being buying opportunities as the US dollar continues to suffer. Given enough time, it is very likely that we will see the 0.75 handle taken out and the market goes looking towards the 0.80 level after that. This does not mean that we get there overnight, but clearly the Australian dollar has been in a nice uptrend for some time, and it is difficult to imagine a scenario where I would be a seller.

After all, we have been in a strong uptrend for some time, and it is very likely that we will continue to see value hunters coming into this market as it is obvious that it wants to go higher. With all of the stimulus coming out the United States, it is likely that the Aussie dollar will continue to see moving to the upside. With this being the case, I believe that the 0.7250 level is now the “floor” in the market.

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