Advertisement
Advertisement

AUD/USD Price Forecast – Australian Dollar Struggling At Highs

By:
Christopher Lewis
Published: Dec 1, 2020, 14:00 UTC

The Australian dollar initially shot higher on Tuesday but continues to struggle above 0.7350. It looks as if we are entering an area of consolidation.

AUD/USD

In this article:

The Australian dollar has rallied slightly during the trading session early on Tuesday but continues to struggle above the 0.7350 level. There is a lot of noise above there, so it should not be surprised at all that we have pulled back. At this point in time though, I see a significant amount of support underneath down at the 0.7250 level, as it is essentially a zone of interest by traders on both sides of the market. That being said, this is an area that I think there could be plenty of opportunities for short-term traders.

AUD/USD Video 02.12.20

Later this week, we get the Non-Farm Payroll numbers coming out the United States so it is likely that volume will drop between now and then. That being said, we are in an uptrend and have been in a massive “W pattern” for some time. Another thing that could send this market higher is the fact that there are now talks of members in Congress trying to come together with some type of stimulus package. Remember, the Australian dollar is highly sensitive to commodity markets as it is a commodity currency.

With this being the case, I think that need to pay close attention to the overall attitude of commodities. Furthermore, the 50 day EMA is starting to approach the 0.7250 level which has been supportive in the past. Ultimately, I think that this is a “buy on the dips” type of scenario, therefore do not have any interest in shorting unit anytime soon. With this, it looks like we are trying to build up the necessary momentum to finally break out.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement