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

The Australian dollar has shown itself to be resilient again during the trading session on Wednesday as we initially fell, only to turn around and try to rally again. The strong candlestick from the Tuesday session will provide a little bit of psychological comfort for the buyers, but at the end of the day there is still a significant amount of noise just above. The solution to this is to simply look for short-term pullbacks that you can take advantage of. That being said, it should also keep in mind that the resistance above is massive resistance.

AUD/USD Video 26.11.20

The Australian dollar of course will be heavily influenced by global growth and global economic expectations, as it is a high beta commodity currency. I think at this point, there is not enough optimism out there to push it above the resistance, but we are trying to build up that pressure. I anticipate that eventually we do break out, based upon the relentless manner in which this market continues to grind higher. I can give you will 100 reasons as to why the market should fall from this area, but quite frankly I do not think anybody is paying attention to them. That might be analysis for another time, but right now I believe that traders are still focusing on the Federal Reserve throwing a lot of liquidity into the marketplace, and therefore it still continues to weigh upon the dollar.

It is worth paying attention to the US Dollar Index, as the 92 handle is massive support, and an area that so far is trying to hold. If it gets broken below, that should be good for everything but the greenback.

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