AUD/USD Weekly Price Forecast – Australian Dollar Continue Slow Grind Higher

The Australian dollar has rallied during the week, breaking above the 0.72 level in fairly lackluster trading. The Aussie dollar has been recovering from a pretty significant selloff, but I do not necessarily know that if it is a recovery of the Aussie, or if it is just simply short covering heading into the end of the year. I would anticipate that is probably more the short covering varieties so therefore I am thinking that I will probably be a seller of this pair once we get back to work in January. In the meantime, I would not expect too much out of this pair, it simply looks like it is ready to tread water for the next 10 sessions or so.

AUD/USD Video 27.12.21

To the upside, I would be very interested in shorting near the 0.73 handle, assuming that there was some sign of exhaustion. To the downside, if we were to break down below that 0.70 level, that would be very bad news for the Australian dollar and send this pair much lower. As far as buying is concerned, that is a decision that I might make in January, but right now I just do not see enough on the chart to convince me that I should put money to work on in the Aussie dollar. It is probably best to leave this one alone for a week or two, and let it tell you what it wants to do after the nonfarm payroll number comes out on January, because that will be the first real news event that traders will be digesting and placing bets on.

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