AUD/USD Weekly Price Forecast – Australian Dollar Takes Off

The Australian dollar has initially gapped higher on Monday but then turned around to pull back towards the 0.75 handle. By doing so, we found plenty of support and then turned around to rally yet again. We have broken above the 0.76 handle, which is a large, round, psychologically significant figure, and an area that I said you could be paying attention to going forward. Longer-term though, I think we have further to go, mainly the 0.7750 level as it is an important level on longer-term charts.

AUD/USD Video 21.12.20

To the downside, I believe that the area between the 0.74 handle at the 0.75 level continues offer plenty of support, so anywhere in that area I would be a buyer of the Aussie dollar as it should offer a significant amount of value. The stimulus talks seem to be going fairly well, and by the time you read this we may very well have a stimulus package out of the United States based upon the headlines that I am hearing. With this being the case and the fact that we just formed a massive bullish flag, I do think that the Australian dollar continues to go much higher over the longer term and I also believe that most people around the world believe this, thereby adding a bit of a “feedback loop” that you can take advantage of.

This is not to say that we will not have the occasional pullback, but the reality is that we are in an uptrend and will remain so for the foreseeable future. Ultimately, I think this is a market that will try to get to the 0.80 level sometime early next year.

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