AUD/USD Price Forecast – Australian Dollar Runs Into Resistance

The Australian dollar rallied a bit during the trading session in the early hours on Monday but gave back the gains to show a bit of hesitation. We are at extreme highs, but it is clear that over the last couple of months we have been building a case for higher levels. With that being the case, I believe it is probably only a matter of time before we do break out, especially as the US dollar seems to be on its back foot in general. For what it is worth, the US Dollar Index has broken through a major support level, so one would think that it is only a matter of time before that shows up over here.

AUD/USD Video 01.12.20

The Australian dollar has shown itself to be very resilient over time, and of course with the global economy focusing more on the idea of a vaccine, it would make quite a bit of sense that the Aussie would be one of the beneficiaries due to the fact that global trade should in theory expand. Whether or not it is overdone might be a completely different conversation, but markets tend to overshoot anyway. If we can break above the 0.75 level, that could open up a massive buying spree.

At this point in time it looks as if the 0.7250 level will be supportive, based upon previous action in of course the fact that the 50 day EMA sits in that general vicinity. Ultimately, I do think that you are still in a scenario where you should be buying dips as the trend has been so strong in you can make out a clearly defined “W pattern.”

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