AUD/USD Price Forecast – Australian Dollar on Precipice of Break Out
The Australian dollar has rallied during the trading session on Tuesday to break above the 0.75 handle. By doing so, the market looks as if it is ready to continue going higher, as commodities are starting to rip to the upside. Furthermore, the US dollar has looked a bit soft against multiple currencies, not just this one. I would also point out the fact that the shooting star from two days ago has now been violated, so it is very likely that we get a bit of follow-through at this point. I have no interest in shorting this pair anytime soon, and I think that if and when we finally clear the 0.76 level, then it is likely we go much higher.
AUD/USD Video 27.10.21
To the downside, the 200 day EMA is starting to show support near the 0.74 handle, so because of this I think that the market is more than likely going to continue to see that as support as well. Quite frankly, this point in time I think it is only a matter of time before we see the buyers coming back into the market, trying to pick up the overall uptrend. With that being the case, I like the idea of buying dips for value, and of course paying for that breakout to the upside. All things been equal, I think the big “W pattern” that has formed is signaling that we could go as high as 0.78 over the next several months. That being said, we could be also forming a bit of a “bullish flag” as well.
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