Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Australian Dollar Forecast: AUD/USD Looks to Extend Gains Above 0.74

Australian Dollar Forecast: AUD/USD Looks to Extend Gains Above 0.74

Peter Hanks, Strategist


What's on this page

Australian Dollar (AUD/USD) Price Outlook:

Australian Dollar Forecast: AUD/USD Looks to Extend Gains Above 0.74

The Australian Dollar has been a beneficiary of the global economic recovery that has taken place over the last two quarters. On the other hand, the US Dollar, particularly in recent weeks, has faltered and helped fuel gains in a variety pairs and some commodities. As a consequence, AUD/USD surged from 0.7000 in early November to 0.7450 earlier this week.

AUD/USD Price Chart: 4 – Hour Time Frame (June 2020 – December 2020)

australian dollar price chart

Even as many of the same fundamental forces continue to pressure the pair, progress has slowed and resistance looms overhead. Already, AUD/USD has stalled just south of 0.7450 which coincides with a series of highs dating back to June and July 2018. The Australian Dollar’s inability to push higher does not rule out further gains, especially given the rate is at it highest point since the Summer of 2018.

Traits of Successful Traders
Traits of Successful Traders
Recommended by Peter Hanks
Traits of Successful Traders
Get My Guide

That being said, nearby resistance could give rise to shorter-term pullbacks that would allow AUD/USD to consolidate before continuing higher in accordance with the longer-term trend. Initial support is rather sparse apart from the lower-bound of an ascending channel and possible horizontal support near 0.7395. As a result, losses could accelerate if the levels are pierced and the next area of notable support may not exist until 0.7340 or 0.7244.

AUD/USD Bearish
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 5% -4% 2%
Weekly 14% -21% -1%
What does it mean for price action?
Get My Guide

Either way, IG client sentiment data reveals retail traders remain overwhelmingly short AUD/USD. The number of traders net-long is 19.83% higher than yesterday and 7.34% higher from last week, while the number of traders net-short is 3.19% lower than yesterday and 3.94% lower from last week. Since we typically take a contrarian view to crowd sentiment, this may mean AUD/USD could continue to rise in the weeks ahead. Still, there is nearby resistance to negotiate before further gains can be tapped. In the meantime, follow @PeterHanksFX on Twitter for updates and analysis.

--Written by Peter Hanks, Strategist for

Contact and follow Peter on Twitter @PeterHanksFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.