AUD/USD Price Forecast – Australian Dollar Continues Move Higher

The Australian dollar has rallied a bit during the trading session on Thursday to break above the 0.76 handle. This is a currency that has done quite well for some time now, so it looks like the next leg higher is starting. This coincides with the US dollar getting hammered in general, so it does make sense that we would go to the upside. The Aussie is moving based mainly upon the idea of stimulus, and it does look like the Americans are getting closer to it. The idea is that it will devalue the US dollar and drive up demand for commodities. Obviously, if you been trading Forex for more than about 15 minutes, you know that the Australian dollar is highly levered to various hard commodities such as gold, copper, and iron.

AUD/USD Video 18.12.20

The size of the candlestick does suggest that the market wants to go higher and therefore I think it is only a matter of time before we would see pullbacks bought into. The 0.75 level should now offer a significant support level, as it is a large, round, psychologically significant figure and of course an area that had previously been resistance before. “Market memory” does suggest that it should do the same, so at this point I think it is only a matter of time before we go to the upside. The 0.7750 level is the longer-term target, and then possibly even the 0.80 level. At this point, it simply comes down to how big the stimulus will be in the United States and whether or not it kicks off a “risk on” type of environment.

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