AUD/USD Price Forecast – Australian dollar skyrockets during the Tuesday sessionThe Australian dollar shot through the 0.74 level without much effort as the Chinese have introduced new liquidity measures to help the local markets. Remember, the Australian dollar is a proxy for currency traders when it comes to China, so it makes sense that we would rally from here.
The Australian dollar shot higher during the trading session on Tuesday, breaking through the 0.74 level. It looks as if the 0.7450 level is the target, as it has been resistive in the past. If we can break above that level, then it’s likely that the Australian dollar will go looking towards the 0.75 level above. That’s an area that will be psychologically important, and if we can break above that level, the market should continue to go much higher. Otherwise, the market will continue to be noisy and range bound, with the 0.7325 level offering a bit of a floor. Remember, the Australian dollar is also very sensitive to the gold market, so pay attention to what happens over there. If the Gold markets rally, the Australian dollar will do the same.
Looking at the markets, I believe that we may be a bit overdone in the short term, but I would anticipate that somewhere around the 0.7380 level, we could find more buyers. Although it has been a very bullish move, I think we are still in the middle of making a larger basing pattern, based not only on the hourly chart, but the longer-term charts as well. I believe that we will eventually break out to the upside, but the 0.75 level is a massive barrier to overcome. The alternate scenario of course is to break down to the 0.73 level and beyond, which could open the door to the 0.70 longer-term.