AUD/USD Price Forecast – Australian Dollar Continues to Grind

The Australian dollar has rallied a bit during the trading session on Wednesday, but still struggles just below the 0.76 level as stimulus talks in the United States continue to drag on. At this point, there are a lot of things going on around the world, but it is very likely that stimulus will have the biggest influence on this pair, as Brexit will be thought of as a bit of a “sideshow” when it comes to the Aussie, although certainly a deal could help overall sentiment.

AUD/USD Video 17.12.20

Looking at the chart, I do think that it is rather easy to see that there is significant support near the 0.74 level and there is obviously a short-term support as well as psychological at the 0.75 handle. All this being said, I think that we are probably going to try to get to the 0.7750 level, followed by the 0.80 level based upon historical figures. For what it is worth, Bitcoin has broken above the $20,000 level for the first time during the trading session, and that often will give people a bit of a “heads up” as to what happens with the gold market, which of course has an influence on the Australian dollar. I know it is more of a “third derivative” type of play, but it is something to keep an eye on.

All things being equal, I think this is a market that you continue to buy the dips in, but we need some type of momentum to really get this thing moving. In the meantime, it will probably continue to be a grind higher, nothing more, nothing less.

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