AUD/USD Price Forecast – Australian Dollar Running Into Exhaustion

The Australian dollar has rallied a bit during the trading session on Tuesday to break above the 0.77 handle. However, we are starting to see a little bit of resistance above and it looks like we may get a short-term pullback. This short-term pullback should be an opportunity for longer-term buyers, especially near the 50 day EMA if we can hold it. To the upside I believe that the market goes looking towards the 0.78 handle, and then eventually above there we will more than likely go looking towards the 0.80 level after that.

AUD/USD Video 10.02.21

If and when we can break above the 0.80 level, the market is likely to go much higher. In fact, that would be the next “leg higher” from a longer-term standpoint. Because of this, I think that we will continue to see a lot of resistance along the way, but it certainly looks as if the market is trying to grind its way towards the crucial 0.80 level which will attract a lot of headlines.

To the downside, the 0.75 level offers significant support. I believe that support extends down to the 0.74 level underneath, so I think of that as a “range of support” that people will be looking at. If we were to break down below there it would obviously change the entire attitude of the market but when you look at the Australian dollar it does not take a lot in the way of imagination to see a potential bullish flag, which this market has done a couple of times here in the last few months. Regardless, it certainly looks bullish at the moment but that does not necessarily mean that it is an easy trade.

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