Earlier today, AUDUSD reached its next objective at 0.7740.
I’ve had this level on my radar for several months.
It’s the level we looked at in my recent AUDUSD commentary on December 21st.
The key takeaway from that article was that AUDUSD shorts were attempting to trade against the momentum.
In other words, there was a good chance the Australian dollar would move higher, and those shorts would get burned.
Sure enough, the 0.7500 support area held, and AUDUSD went nearly straight up following that December 21st blog post.
Before we go any further, here’s a look at the 0.7740 level between 2016 and 2017.
Notice how the area served as resistance for more than a year.
As such, I would be surprised if AUDUSD breaks 0.7740 without a significant fight from sellers.
That said, I do expect the pair to clear 0.7740 and move higher eventually.
As I’ve stated for a while, I anticipate that AUDUSD will reach 0.8100 in 2021, perhaps even higher.
I’ve discussed all of those at length in recent weeks.
But, for now, AUDUSD bulls have to deal with 0.7740.
A daily and weekly close above that would open the door to 0.8100.
Alternatively, a pullback into the 0.7620 support area could present a buying opportunity provided the bullish momentum remains intact.