Australian Dollar Continues to Power Higher

The Australian dollar has shown itself to be strong yet again during the day on Thursday as the 0.73 level has now been peers. If we can continue to see this type of momentum, it is very likely that this pair will go looking towards the 200 day EMA which currently sits at the 0.7350 level. A break above that indicator will have a lot of longer-term traders paying close attention to this as a bigger move, perhaps reaching towards the 0.75 level, where we had sold off from and of course a large, round, psychologically significant figure that a lot of people will be paying close attention to.

AUD/USD Video 14.01.22

To the downside, I believe that the 50 day EMA will more than likely offer support, and it does look as if it is trying to curl higher so that is a good sign as well. All things being equal, this is a market that certainly looks as if it wants to go higher over the longer term, but you may get an opportunity to buy this currency on short-term pullback as we have seen such a massive breakout, eventually the market needs to pullback in order to find the proper inertia to continue going higher. That being said, I plan on scaling into a position slowly and building up as we move along. I have no interest in shorting until we break down below that 50 day EMA now.

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