AUD/USD Price Forecast – Australian Dollar Reaching Towards Resistance

The Australian dollar has rallied again during the trading session on Monday, breaking above a significant amount of resistance that has been in play for a couple of days, but it still looks as if we are struggling just above. It is because of this that I am not overly impressed quite yet, as there is significant resistance near the 0.78 handle, which could also extend just a bit further. With that in mind, I would be very hesitant to jump in and start buying.

AUD/USD Video 27.04.21

At the same time, it is going to take a certain amount of iron will to start shorting this market as we have seen so much in the way of resiliency. After all, both February and March form shooting stars, and the fact that the market still fights to get above them and tells you just how much potential strength there is. Because of this, I would be very cautious about trying to put a ton of money into this market, but then once we get a clear decision, you can start to add to your position.

Above, there is massive resistance all the way to at least the 0.80 level, and likely extending to the 0.81 level based upon historical price action. Because of this, I think we have a lot of work to do in order to make a bigger move to the upside. It is also worth noting that we have made such a huge move to the upside that we could get a significant pullback and it would simply be the market trying to find value. This pair obviously is highly influenced by risk appetite so keep that in mind.

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