AUD/USD Weekly Price Forecast – Aussie Continues to Press ResistanceThe Australian dollar initially pulled back a bit during the week but turned around to show signs of life again. It looks as if we are pressing the highs.
The Australian dollar had another strong week, after initially pulling back towards the 0.7250 level. That is the bottom of the short-term range that we have been in, and therefore it looks like the market will go back and forth. At this point in time, it is likely that we will continue to see a big surge to the upside and trying to push higher based upon perhaps the Federal Reserve, or maybe even the potential global reflation trade. After all, that would be a boon for the Aussie, because it is so highly levered to various commodities such as copper and gold.
AUD/USD Video 30.11.20
The 200 week EMA sits underneath and is starting to try to turn higher, and therefore I think what we are looking at here is the possibility of a shot higher. At this point in time, this is a market that I think continues to look very optimistic, but as we have seen a massive shot higher, followed by a couple of months’ worth of digesting, which is actually a good thing for buyers. That being said, I do think that we are trying to find buyers underneath on dips and therefore you probably need to look at short-term charts in order to fine-tune an interest into the market.
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At this point, it is obvious that the buyers are in control and therefore it is going to be almost impossible to short this market. In fact, it is not until we break down below the 0.70 level that I would be concerned about the trend.
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