Daily Price Action

AUDUSD Reaches 0.7740; Where to Now?


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.

AUDUSD weekly key level
AUDUSD weekly time frame

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.

That target goes hand in hand with the EURUSD at 1.2500 and GBPUSD at 1.4350.

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.

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AUDUSD key horizontal levels on the daily time frame
AUDUSD daily time frame

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Justin Bennett says

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Menhya Moses says

Happy new year….

Masoud says

Happy new year. I wish the best for you and your good family.

Ichwan Antonius says

Happy New Year 2021 … Wish you and family all the best, stay healthy & safe

christian ali says

happy new year

Feisal Rahimtoola says

Awesome! This analysis may hold for whole of 2021 and beyond.

Ejike says

Justine, you’ve been a great eye opener to me as fare as swing and position trading is concern. I wish you good health, may good God grant your heart desires this year.

Jam says

Happy new year.

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