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

The Australian dollar has rallied a bit during the trading session on Thursday, reaching towards the 0.76 handle. That of course is an area where we have seen resistance over the last couple of days, but all things being equal the market is likely to see a bit of choppy behavior between now and next year, as we are heading into Christmas and of course New Year’s Eve. In other words, volume will be very thin and therefore price action will probably be a little bit unreliable. That being said though, the trend is most certainly to the upside so there is no point in fighting that.

AUD/USD Video 28.12.20

Pullbacks at this point in time will more than likely see plenty of support between the 0.74 and 0.75 levels, so the analysis pretty much remains the same, it remains a “buy on the dips type of market.” Longer-term, I believe that the Australian dollar goes looking towards the 0.7750 level, possibly even as high as the 0.80 level. Obviously, the next couple of trading sessions will be very quiet, as most traders are going to be worried about Christmas, and not necessarily about trading.

Having said that, I do believe that the trend is firmly ensconced and there is no reason to fight it at this point in time. Having said that, if we were to break down below the 50 day EMA which sits just below the 0.74 handle we could see a bit further downside. Longer-term trades do dictate that we probably go higher based upon stimulus and general anti-US dollar trading.

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