AUD/USD Price Forecast – Australian Dollar Continues to Find Support

The Australian dollar fell again during the trading session on Friday, only to turn around and form a slightly supportive candlestick.
The Australian dollar initially fell during the trading session on Friday only to turn around and show signs of strength again. During the previous session, we had reached down towards the 50 day EMA, only to recover. Because of this, I think there are buyers underneath that will continue to try to push this pair higher. The 0.78 level has been resistance so far, and I think that is eventually where we will end up. At that point, then we need to decide whether or not we can break out. If we can, then the Australian dollar it will target the 0.80 level next, which of course is a large, round, psychologically significant figure from a longer-term standpoint.
If we do somehow break above that level, then the Australian dollar becomes “buy-and-hold” yet again. In that scenario, we could be looking at a move to the 0.90 level over the next year or so. In the meantime, I think we are simply trying to build up the rest of the momentum for the bullish flag that is printing, but I do recognize also that we could fall towards the 0.75 level to find support as well. At this point, the 0.75 level is where I consider the “floor the market” to currently reside.
A lot of what we are seeing here is the “reflation trade” play now. People start to buy commodities as a bet on governments throwing money at economies, in the form of stimulus and public works. Furthermore, demand for commodities in theory should pick up and China continues to produce more goods for the rest of the world, which of course is highly influential on the Australian economy.