Annual Forecast for AUDUSD (2021): Aussie to Continue Taking the Upside Challenge Towards the 0.8136 Level

AUDUSD Price Analysis – December 24

In early 2021, AUDUSD will be capped at 0.7574/7638 but should hit a 2018 high of 0.8136 by the end of the year. AUDUSD has remained in a clear medium-term uptrend since mid-2020. The lower limit is significant enough to suggest that AUDUSD has the potential to test the key 0.8136 high.

Key Levels
Resistance Levels: 0.8136, 0.7800, 0.7700
Support Levels: 0.7414, 0.6991, 0.6827
AUDUSD Monthly Chart: Ranging
The Australian dollar is currently climbing against the US dollar after hitting more than 18-year lows at 0.5506 in March. Technically, following the rapid recovery in AUDUSD from selling lows and breaking above the 0.7414 high, AUDUSD is expected to move higher towards 0.7600 at the end of the year in the third phase of gain.

AUDUSD is likely to advance past 0.7600 into the 0.7700 range, but the potential for a more substantial move towards the 0.8000 level now seems unlikely given how widespread attrition is. Likewise, AUDUSD is likely to dip below 0.7600 to 0.7500, but the likelihood of falling to 0.7414 also seems unlikely.
AUDUSD Weekly Chart: Ranging
The AUDUSD uptrend continued last week and reached a high of 0.7639. As a temporary top has been formed, the initial bias this week is neutral for some consolidations. On the other hand, a sustained break of 0.7639 would have a stronger bullish impact.

The next target will be 61.8% forecast from 0.5506 to 0.7414 from 0.6991 to 0.8136. These trends are likely to continue into early 2021 when Australia’s relative advantage maintains its rate. The price is above the 0.7414 support level and should test the 0.7800 resistance due to the expected positive results.

Conclusion
The Aussie has shown solid gains from this week’s lows, barely reaching first support at 0.7414. The Australian dollar is optimistic and ready to continue its gains towards the next target in the price channel around 0.7800. Dips are likely to find support ahead of 0.7500 and again at 0.7414, with only a close below 0.7340 support negating positive bias.

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