AUD/USD Price Forecast – Australian Dollar Grinding Towards Highs

The Australian dollar has gone back and forth during the trading session on Friday, as the Aussie continues to build its strength against the greenback. Ultimately, this is a market that looks as if it is going to go looking towards the 0.75 handle given enough time, but that does not necessarily mean that it is going to be immediately. After all, it has been a bit of a grind for the last couple of months, but one would think that if and when we can break above the 0.75 level, it could kick off a rather big move to the upside. I like the idea of taking advantage of pullbacks for value due to this resiliency that we have seen.

AUD/USD Video 07.12.20

I believe that the 0.7350 level is support that extends down to the 0.7250 level. It is worth noting that the 50 day EMA is now sitting at the 0.7250 level as well, so ultimately, I think that all will kind of come to roost here as a major support level. Until we break down below the 50 day EMA I think there is plenty of strength and therefore it is going to be very difficult to short this pair. Ultimately, I think that the Australian dollar is poised to be one of the better performers due to commodity strength based upon the reflation trade and the weakening US dollar in general. With this, pullbacks should be looked at as potential value, and now it looks like we are getting ready to launch yet again.

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