AUDUSD Gains Traction for the 3rd Day in a Row, Nears 0.7750 Level Amid Continuous USD Selling

AUDUSD Price Analysis – December 31

AUDUSD continued its rally and hit 0.7742, its highest level in almost 3 years, at the start of Thursday’s session. Underlying bullish sentiment in global equity markets continued to undermine the safe-haven dollar.

Key Levels
Resistance Levels: 0.8136, 0.8000,0.7800
Support Levels: 0.7635, 0.7571, 0.7414
AUDUSD Long term Trend: Bullish
In a long-term trend, the general downtrend from 1.1079 (high) could have ended at 0.5506 (low). Solid trading above the 38.2% retracement from 1.1079 to 0.5506 at 0.7635 could confirm this bullish scenario. The advance from 0.5506 could be either a resumption of a long-term uptrend or a corrective rally.

A reaction to the key resistance level of 0.8135 will reveal such a scenario. Support is expected at 0.7414, the former double top following the AUDUSD cap in late 2018 and rallying in 2020, until the recent upside breakout. The next level to watch out for is 0.70, and the round number provided worked like a double bottom before the late burst.
AUDUSD Short term Trend: Bullish
A breakout of the 0.7635 resistance level for AUDUSD indicates a resumption of the uptrend. The intraday bias is now rising again. A rise from 0.5506 should target the 61.8% forecast of 0.5506 to 0.7414 from 0.70 to 0.8170 next. On the other hand, a break of 0.7461 support is needed to confirm a short-term top.

However, in the event of a pullback, the trend may remain bullish. The weakness of the dollar as a whole strengthens the “bullish” scenario of the pair. In the short term, the risk remains biased upward on the 4-hour chart despite overbought readings. Another step north should be expected on a break above 0.7800, the nearest resistance level.

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