AUD/USD Weekly Price Forecast – Australian Dollar Breaks Out

The Australian dollar has been banging against the 0.78 level for some time, and now has finally broken above it. By doing so, it will have cleared out a lot of resistance and it is likely that the pair continues to go higher. To the upside, I see the 0.80 level as the most obvious target, and an area that has shown itself to be historically important in the past.

Because of this, I like the idea of trying to aim for that, but I also recognize that there is a bullish flag that we just broke out of. That bullish flag measures a little closer to the 0.86 handle, so this does suggest that we still have a long way to go. Furthermore, we are starting to get rather close to the “golden cross” on this weekly chart, but that is a technical analysis fallacy most of the time and is even less interesting on the weekly chart.

To the downside I see the 0.76 level now as offering the “floor, but quite frankly I would be a bit surprised if we get anywhere near there. I do recognize that the 0.80 level is a major level on monthly charts, so I think we will probably have a little bit of work to do once we get there.

If we can get above that level, it opens up a move to the 0.90 level, which of course could take several months or even a couple of years, but that is what it suggests. Clearly, we cannot keep up the momentum that we have seen in this pair over the last year, but the direction has clearly been stated.