AUDUSD has enjoyed an incredible run since the March low.
The pair has gained 1,800 pips since March 19th, and the uptrend is still very much intact.
However, it has lagged its New Zealand counterpart.
While the NZDUSD has been in rally mode in the last couple of weeks, AUDUSD has struggled below 0.7340.
That said, the price action still looks relatively constructive.
Buyers continue to pressure 0.7340 resistance and 0.7220 remains key support.
That doesn’t mean there won’t be pullbacks, but I do like AUDUSD higher into 2021 as long as 0.7020 is intact as support.
A close above the 0.7340 resistance level would open the door to the year-to-date high for AUDUSD just above 0.7400.
But that might be just the start.
Keep in mind that the Australian dollar carved a higher low recently on the higher time frames.
That bounce from 0.7020 support continues to point to higher prices in 2021.
A daily and weekly close above 0.7400 would set the pair’s sights on 0.7740 and perhaps 0.8120.
Alternatively, a close below 0.7230 would suggest weakness.