AUD/USD Weekly Price Forecast – Aussie Dollar Takes Off Like a Rocket

The Australian dollar has shown itself to be rather resilient and strong during the course of the week, after initially pulling back. The hammer that formed during the previous week of course is a very bullish sign as it is sitting on top of the 0.75 handle. The size of the candlestick is rather impressive, but you should also keep in mind that we are in the midst of the holiday season, so liquidity and volume of course are very thin. Ultimately, I do think that a pullback is coming but I think that pullbacks should be a nice buying opportunity. Longer-term, the market should go looking towards the 0.80 level above, which is a large, round, psychologically significant figure.

AUD/USD Video 04.01.20

The US dollar is in serious trouble, and I think that might be one of the themes for next year, selling the greenback as stimulus continues to weigh upon it. There is the reflation trade that is going on right now as stimulus should send money into commodities. Having said that, the Australian dollar is highly tied to commodities, so it makes quite a bit of sense. The area between 0.75 and 0.74 should be massive support, so if we were to turn around a break down through that level, it would be a major problem. I do not think that happens anytime soon unless of course there is some type of major breakdown. With that in mind, unless something drastic happens I believe that we will continue to see buyers jump into the market and take advantage of any time there is value.

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