Yahoo Finance AUD/USD Price Forecast – AUD Continues to Build Case for Higher Prices
The Australian dollar has pulled back just a bit during the trading session on Friday but at this point in time it looks likely that we are ready to continue going higher. The 0.77 level is an area that has acted as a bit of a magnet as of late, after breaking above the 0.75 handle. When you look at the chart overall, you can see that the 50 day EMA sits just above the 0.75 handle, an area that of course is a large, round, psychologically significant figure. Short-term pullbacks will continue to be looked at as potential buying opportunities in the big scheme of things, as the market does tend to focus closely on these big figures.
AUD/USD Video 18.01.21
If you look at the recent action, you could make an argument for a bullish flag, which measures for a move towards the 0.80 level, possibly even the 0.81 level. With that being the case, I think it makes quite a bit of sense that we eventually get there from not only a technical analysis standpoint, but also the fact that commodities in general will continue to thrive in a world where there is massive amounts of stimulus coming from multiple countries. That being the case, I do like the idea of a longer-term “buy-and-hold” strategy, adding little bits and pieces along the way on short-term dips. I think that this is a cyclical change, at least for the foreseeable future, as the “reflation trade” is in full effect.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
