AUD/USD Price Forecast – Australian Dollar Trying to Break Out

The Australian dollar has clearly been bullish for some time, and aggressively stubborn to the upside. That being said, I believe that we are on the precipice of a major breakout. I will base my trading decision on how the candlestick closes at the end of the day on Tuesday, but if it is above the 0.71 handle, I feel that the Australian dollar has changed its overall trend for the long term. This is not to say that it is going to be straight up in the air but clearly there is a major upside bias. If that is going to be the case, then obviously buying the dips should continue to be the best way forward.

AUD/USD Video 22.07.20

My longer-term target, at least over the course of the next several months would be the 0.80 level. Again, I do not think we get there tomorrow but it is the most logical target based upon measurements and historical support and resistance. This is a move that we are seeing in relation to the greenback everywhere, so it is not just the Australian dollar that is trying to break out against it. For what it is worth, New Zealand dollar traders have already accomplished this so it is more likely than not that we will break out here as well, considering that the Kiwi dollar and the Aussie dollar tend to move in the same overall direction. Clearly at this point though, you cannot be a seller of this pair.

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