The Australian dollar has pulled back just a bit during the trading session on Wednesday as we have pulled back a bit from the highs. That being said, the market is still very much in an uptrend and therefore the 0.78 level above should offer a little bit of a market for a potential break out. That being said, I think the occasional pullback may be simply an opportunity to build up the necessary momentum to go long. The 50 day EMA sits near the 0.75 which of course would be a gift, but I do not know if we are going to get it. After the action on Tuesday, it certainly looks as if the buyers are willing to come back.
AUD/USD Video 14.01.21
By most measures, this market is very bullish and of course the US dollar is oversold. Nonetheless, the market is likely to go towards the 0.80 level, given enough time. That being the case, I think that we have a scenario where the market will eventually find a reason to get there, and therefore I believe in buying dips. I do not necessarily think you should jump in with huge positions at this high level, but if you are cautious and steady, you should make a certain amount of money. All things being equal, this is a market that continues to be bullish and strong, especially if we see the commodity markets continue to go higher and that should continue to drag the Australian dollar right along with it. That being said, look for value and take advantage of it as it occurs.
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