AUD/USD Price Forecast – Australian Dollar Continues to Grind Higher

The Australian dollar has rallied again during the trading session on Monday, as we continue to see a major “risk on” type of attitude. As stimulus continues to be discussed in the United States, this continues to work against the value of the greenback in general. Ultimately, this is a market that looks as if it has broken a major resistance barrier, and that it is ready to go much higher, perhaps as high as the 0.7750 level. To the downside, the area all the way down to the 0.74 level should offer a certain amount of support, and clearly it is the favored to the upside.

AUD/USD Video 15.12.20

The 50 day EMA sits underneath and is starting to grind higher, and therefore it is likely that we will see that act as a barrier for any selling pressure going forward as well. Ultimately, I do think that we are looking at a market that is trying to find its way higher regardless, and therefore any time it pulls back it is likely that we are trying to find bits and pieces of value. If there is going to be significant stimulus, the Aussie dollar will then be a major beneficiary due to the fact that it will drive money into commodities, and therefore it moves right along with commodities in general.

After all, Australia is a major exporter of hard commodities such as copper, aluminum, and the like. If there is going to continue to be more money thrown out there by the U.S. Congress, it makes quite a bit of sense of the US dollar also falls at the same time.

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