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

The Australian dollar has rallied a bit during the trading session on Thursday to break the top of a shooting star from the Wednesday session. This is a rather strong sign, but there is also a significant amount of resistance just above. Quite frankly, I think we are trying to build up the necessary momentum to break not only this little bit of noise, but perhaps the 0.78 level above. If we break that level, then the Australian dollar is likely to go looking towards the 0.80 level after that, which is a large, round, psychologically significant figure. Furthermore, it is also a spot on the monthly charts that a lot of people pay attention to, so I do think that it comes into play for a potential “buy-and-hold” trade if we do break out.

AUD/USD Video 12.02.21

As far as selling is concerned, I have no interest whatsoever in trying to short this market, not after the action that we have seen over the last couple of days. I believe that the market will continue to find buyers on short-term dips, as it looks like we are trying to form a massive bullish flag, and perhaps even a have already started the move to break out above the top of it and perhaps go much higher. Furthermore, the 50 day EMA has offered significant support from a recent pullback, so that suggests that the longer-term trend is still very much intact. Ultimately, I think that you will see a lot of noise in general, but this is still a strong market as of late, so I do believe that although it is going to be noisy, it still looks positive.

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