AUD/USD Weekly Price Forecast: Aussie Dollar Continues to Grind Higher

The Australian dollar initially fell during the course of the week but turned around to show signs of strength again. As we slammed into the 0.78 level, we have found a little bit of resistance, so we may get a short-term pullback. Quite frankly, that short-term pullback should be a nice buying opportunity as we have sliced through a couple of rather impressive resistance barriers underneath. It now appears that the 0.75 level is the “floor in the market”, as it looks like stimulus will be coming out of the United States hand over fist.

AUD/USD Video 11.01.21

Not only does that signify that people will be selling the US dollar but buy the Australian dollar due to the increased demand for commodities worldwide. As that trade continues to play itself out, I believe that the Australian dollar is likely to go looking towards the 0.80 level above which is the next major, round, large, psychologically important figure. Above there, then things get a little bit more less clear, but at this point in time it is obvious that the buyers are in complete control.

Ultimately, I think that this is a trade that should end up being a longer-term play as well, but just know that entering here might be just a bit stretched. Having said that, the Australian dollar does tend to move rather rapidly at times, so that is something to take into consideration. I have no interest in shorting this pair, at least not until we break significantly below the 0.74 handle. That does not look very likely to happen anytime soon, so I suspect that will not even be a thought anytime in the near future.

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