AUD/USD Weekly Price Forecast – Australian Dollar Pierces 0.75

The Australian dollar has rallied significantly during the trading week to break above the 0.75 handle. At this point, the market is likely to continue going higher, perhaps testing the 0.76 handle. If we can clear that level, then it is likely that the market could go looking towards the 0.78 level. This is also the “measured move” of the W pattern going forward, and therefore I think what we are going to see is a lot of upward mobility over the longer term. Keep in mind that the Australian dollar is also being buoyed by interest rates ripping higher in that country, so that could be yet another reason to get long.

AUD/USD Video 01.11.21

At this point in time, I like the idea of buying bits and pieces of this market on dips, as I think we are likely to continue seeing value hunting going forward. Ultimately, this is a market that I think continues to see a lot of pressure to the upside, but all things being equal this is a market that will eventually find a reason to go higher, but we may need to pullback in the short term in order to pick up a little bit of value. Nonetheless, the market is likely to see volatility, but plenty of upward pressure from a longer-term standpoint from what I can see. As long as we stay above the 0.74 level, I more than likely to be a buyer of dips than anything else. If we break down below the 0.74 handle, then it is possible that we could go down towards the 0.73 level next.

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