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AUD/USD Weekly Price Forecast – Australian Dollar Forms Hammer

Christopher Lewis
·2 min read

The Australian dollar has fallen a bit during the trading week, dipping down towards the 0.75 handle at one point only to turn around and form a hammer. That being said, the market looks likely to see more buying pressure, and the fact that we are closing at near the 0.76 level suggests that the market could continue to go to the upside. I believe that the 0.7750 level above could be a target, possibly even the 0.80 level could be interesting as well. All things being equal, the market looks very bullish, and it does look like it is ready to continue going higher. With this in mind, I am a buyer of dips, as we should continue to see stimulus driving down the value of the US dollar.

AUD/USD Video 28.12.20

It is not until we break down below the 0.74 level that I would be concerned about the Australian dollar, and quite frankly I think at this point in time it is only a matter of time before we do go much higher due to the idea of the market seeing more commodities bought with that stimulus. Ultimately, it is not less we get some type of significant break down in risk appetite that I would be concerned about this pair. It is not that we cannot pull back from here, just that the market will continue to see value hunters coming back in. The 0.80 level above will be a psychologically significant figure to deal with, as well as a historical and important level. Because of this, I think that will be the target of the next leg higher. Pay attention to gold, it will also have its influence here.

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This article was originally posted on FX Empire

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