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

The Australian dollar has rallied a bit during the trading session on Friday, as we continue to see the bullish pressure in the Aussie dollar overall. When you look at the chart, you can make an argument for a huge “W pattern”, which of course is a bullish sign. Ultimately, I think that the market should continue to go higher based upon the fact that the Federal Reserve is going to come in and flood the market with liquidity, but at this point in time it is very likely that we are going to see noise more than anything else.

AUD/USD Video 30.11.20

Pullback should continue to show signs of support near the 0.7250 level, and of course the 50 day EMA comes into play just below there as well. With this being the case, it is likely that the market continues to go higher. After all, the Australian dollar is highly sensitive to the global growth situation, as it is a high beta currency. It is a proxy for the commodity markets in general, so I do think that if you pay attention to hard assets such as copper, gold, and even energy, then it gives you an idea of where the Aussie dollar may end up.

Looking at the chart, it is not until we break down below the 0.70 level that I would be interested in shorting this market. Until then, one has to think that value hunters will come back into play and push to the upside. The US dollar is on its back foot against multiple currencies, not just the Australian dollar.

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