AUD/USD Price Forecast – Australian Dollar Continues Sideways Drift

The Australian dollar has shown itself to be vulnerable during the trading session on Wednesday as the US dollar has strengthened heading into the FOMC. You can make out a micro descending triangle on this chart, but quite frankly I would not worry too much about it. We are in a massive uptrend and that has not changed due to the last couple of days.

AUD/USD Video 28.01.21

To the downside I see the 0.75 level as offering significant support, as well as the 50 day EMA which is currently sitting just above there. All things being equal, I think that this will be a “buy on the dips” market going forward, as the Aussie dollar continues to be one of the favored place for those looking to take advantage of reflationary movements by governments around the world. Because of this, I think that a patient trader will do quite well waiting for a little bit of value to enter the market. Remember, the Australian dollar has been extraordinarily bullish of the last several months and may simply need to take a little bit of a break after that type of movement has been made.

To the upside, I do believe that this market goes looking towards the 0.80 level given enough time, not only due to the fact that it is a psychologically important figure, but it also is a structural one as well. At this juncture, I believe that we are looking at a scenario in which it is only a matter of time before we go higher, as the Federal Reserve continues to flood the markets with liquidity.

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