AUD/USD Price Forecast – Australian Dollar Looks Sluggish

The Australian dollar has initially tried to rally during the trading session on Tuesday but has given back the gains to show less than enthusiastic bullish pressure. Ultimately, the US dollar has been rallying over the last couple of days, but this is probably more or less going to be a short-term play than anything else, and with that being the case, I have a hard time believing that there will not be people out there looking to pick up the Australian dollar “on the cheap”, as we continue to see demand for commodities based upon the stimulus theme coming out the United States.

AUD/USD Video 13.01.21

At this point, the 0.75 level underneath continues offer a significant amount of support from a psychological and structural standpoint, so I think that if we get anywhere near that level, there should be buyers looking to get in and start buying again. To the upside, I believe that the 0.78 level is still a bit resistive, but I think ultimately this market will go looking towards the 0.80 level over the next several months. That being said, the Australian dollar has been extraordinarily bullish over the last year or so, so it may be more of a grind at this point as the “easy money” has already been made.

However, if we do get some type of major “risk off event”, this pair could be very vulnerable to significant short-term selling. Barring that, I look at this type of pullback as a potential buying opportunity and I think that all you need to do is simply wait on the sidelines for some type of support candle to get involved with.

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