AUD/USD Price Forecast – Australian Dollar Testing Potential Support
The Australian dollar has initially tried to rally during the trading session on Tuesday but gave back the gains in order to show a little bit of hesitancy. Ultimately, this is a market that I think will show a lot of support underneath based upon the recent break out, but if risk appetite starts to deteriorate, we may have to drift into the lower levels. The 50 day EMA sits at roughly 0.77, an area that has previously been supportive. In other words, we could drop down to that area, but I think it is more likely than not that will find buyers between now and then.
AUD/USD Video 12.05.21
To the upside I see the 0.80 level as a potential target, and an area that I would be very interested in aiming for. If we can break above that general vicinity, then it is very likely that the Australian dollar will take off for a much bigger move. In that scenario, it is likely that we would see this become more or less a “buy-and-hold” type of situation that could send the Aussie as high as 0.90 over the next several months. This does not necessarily mean that it would be easy, but that would be your longer-term projection. I have no interest in shorting this pair, at least not anytime soon as it continues to be stubbornly bullish. With that being said, I continue to look for buying opportunities.
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