AUD/USD Price Forecast – Australian Dollar Breaks Out

The Australian dollar has rallied significantly during the course of the trading session on Thursday to show signs of breaking out for a bigger move. At this point in time, it looks as if the market is going to continue to see more of a “buy on the dip” mentality in the short term, but whether or not it can hang on long-term is a completely different question. I do believe that the market probably has further to go to the upside, reaching towards the 50 day EMA. I think this is a nice recovery just waiting to happen, but I am not quite convinced that we are changing the overall trend quite yet. That being said, it does make quite a bit of sense that we have seen a significant bounce, considering that it started at the 0.70 level.

AUD/USD Video 17.12.21

All things been equal, this is a market that I think will go looking towards the 50 day EMA and challenge it. If we can break above there, then it opens up the move to the 0.73 level. The 0.73 level is an area that could cause a little bit of psychological resistance, but the 200 day EMA at the 0.7375 level would be the next target. Whether or not we can change the overall trend is still a little bit of an open question, but we are certainly making the argument to do so. Keep in mind that we are heading towards the end of the year, so what we might do is rally a bit, and then simply grind sideways. Ultimately, this is a market that is picking itself up from a massive floor.

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