AUD/USD Price Forecast – Australian Dollar Breaks Out

The Australian dollar rallied quite significantly during the trading session on Thursday, breaking above the 0.75 handle. That of course is a good sign, considering that it is a large, round, psychologically significant figure. That being said, it looks like we are starting to enter the next leg higher, as the Aussie has been struggling to finally clear to the upside. That being said though, I think that we are more than likely going to go looking towards the 0.7750 level, and then possibly the 0.80 level. The US dollar has been beaten down against multiple currencies, so the Australian dollar will continue to benefit from this.

AUD/USD Video 11.12.20

All things being equal, I think that now we have a significant amount of support underneath near the 50 day EMA which is just above the 0.7250 level. Furthermore, the 0.7350 level has previously been resistance, and it should now be the beginning of pretty significant support. That being the case, I think we continue to see more of a “buy on the dips” scenario as we have seen previously. Gold markets rallied would also be a benefit as well, but quite frankly this is a market that I think will continue to be paid close attention to.

If we did break down below the 50 day EMA, it is likely that the Australian dollar could go down to the 0.71 handle, but I do not see that happening anytime soon. After all, the momentum is clearly to the upside and the US dollar is on its back foot against most other currencies so it is difficult to imagine why the Australian dollar would be any different at this point.

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