AUD/USD Weekly Price Forecast – Aussie Showing Signs of Strength

The Australian dollar has rallied significantly during the course of the week, only giving back slight gains on Friday. That being said, the market still looks very bullish and I do think that it is only a matter of time before we see some type of push to the upside. Ultimately, I think that we are trying to get to the 0.80 level above, but we need to get through the 0.78 level first. Keep in mind that the Australian dollar is getting a bit of a boost due to the reflation trade, and of course the stimulus package coming out the United States. With this being the case, the idea is that we are going to continue to see buyers on dips, and I think it is only a matter of time before we get the major breakout.

AUD/USD Video 15.02.21

When you look at the monthly chart, the 0.80 level is a major barrier to get above, and if we can break above there, the market is likely to become more of a “buy-and-hold” situation. I do think that it would be very noisy between now and then, so I look at the idea of picking up value and then pushing even higher. It is not until we break down below the 0.74 level that I would be concerned about it. All things been equal though, the bullish flag does suggest that we are going much higher. However, that does not necessarily mean that we are going to shoot straight up in the air immediately. I anticipate that we will see a lot of noise, but ultimately the buyers will come back in.

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