AUD/USD Price Forecast – The Australian Dollar Breaking Out

The Australian dollar has rallied significantly during the trading session on Wednesday to break above the 0.7650 level. Ultimately, the market is likely to continue to go higher, reaching towards the 0.7750 level. Ultimately, I think that this is a market that continues to see a lot of short-term pullbacks that people will take advantage of, as stimulus in the United States is punishing the greenback in general.

AUD/USD Video 31.12.20

Now that we are well above the 0.75 handle, it looks as if that area will continue to offer support. The area extends down to the 0.74 handle, where we see the 50 day EMA reaching. Ultimately, I think that short-term pullbacks continue to be buying opportunities, as the Australian dollar is lifted not only by stimulus, but the idea of more demand for commodities due to the spending that governments are going to do. If that is going to continue to be the case, the Australian dollar should go looking towards the 0.7750 level. Quite frankly, at this point in time this is a market that looks like it wants to go as high as the 0.80 level which is a large, round, psychologically significant figure.

As far selling is concerned, I do not have any interest in doing so right now, due to the fact that the market is going to continue to feed on this momentum, but you should also keep in mind that volumes are a little bit thin at this point in time but given enough time I do think that this trend continues as there is really nothing out there to change things. Ultimately, this is a market that continues to be “buy on the dips.”

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