AUD/USD Price Forecast – Australian Dollar Reaches Big Figure Again

The Australian dollar has rallied a bit during the trading session on Friday, slamming into the 0.72 level. This is an area that has been resistive several times over the last couple of weeks and is also the scene of where the market broke down below the uptrend line that I have marked on the chart. That being said, it might be a bit difficult to continue going higher, but I do believe that we will get some type of resolution rather soon. Market structure is a bit all over the place, and the market currently looks as if it is still respecting the area underneath between 0.70 and 0.71 as a major area of influence. Furthermore, once we get above the 0.72 level, then the 0.73 level comes into focus, as it was the scene of the initial break down.

AUD/USD Video 12.10.20

The Australian dollar is highly levered to the Chinese economy so that is part of what is happening with its resiliency, as we have not seen the same type the selloffs that the EUR/USD pair has seen, although it is similar in its overall movement. That being said, I believe this comes down to the US dollar and whether or not there is stimulus. Right now, people are still betting on the idea of getting stimulus out of Washington, sooner or later. I think at this point though, we also have to look at whether or not there is going to be demand for commodities, so there is a huge cross current of noise in this pair. The final verdict is essentially that I think we continue to grind sideways overall.

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