AUD/USD Price Forecast – Australian Dollar Continues to Break Out

The Australian dollar gapped higher to kick off the trading session on Monday, only to turn around and pull back to fill that gap before taking off to the upside. Ultimately, this is a market that looks like it is going to try to get back to the 0.80 level, an area that of course is a massive barrier. The barrier extends to the 0.81 handle, and therefore I think it is going to be difficult to break above there, but if and when we do this could send this market much higher and make it more of a “buy-and-hold” type situation sending the Australian dollar to the 0.90 level.

AUD/USD Video 11.05.21

As far as a pullback is concerned, I believe that the 0.78 level should be supportive, and then of course the 50 day EMA after that. The 50 day EMA underneath is an area that I think would attract a lot of attention, because we have seen it holds so stringently over the last several weeks. Ultimately, I have no interest in trying to short this market, but if we broke through all of that then I might consider it. I anticipate that this will be very volatile and choppy to the upside, but we certainly look as if we are ready to make some type of an attempt to break out to the upside. I do believe that you need to be cautious with your position size, but I also plan on being somewhat aggressive if we finally do break out to the upside, something that is going to take a lot of momentum and effort.

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