AUD/USD Price Forecast – Australian dollar continues to grind higher on Tuesday

The Australian dollar has initially dipped during the trading session on Tuesday, breaking below the 0.76 level during the short term. We did bounce back above there, reaching towards the open again, showing a bit of a hammer for the day, and I think that the market will eventually go higher, perhaps reaching towards the 0.77 level in the short term. I think this pair will continue to be very noisy, and therefore I think that the biggest thing to keep in mind is that the pair is very sensitive to risk appetite in general, and with so many things going on in the world right now it makes sense that the Australian dollar will struggle to find a bit of clarity.

Another thing that you should pay attention to is that the Gold markets have a major influence on the Australian dollar as well, and I think that eventually that influence could be felt. In general, after forming so many hammers on the weekly chart, I believe that it’s only a matter of time before the buyers take over again and start pushing higher. However, if we were to break below the 0.75 handle, that could be a very negative scenario, and send this market much lower. At that point, I anticipate we could go to the 0.7250 level. However, based upon the weekly charts I fully anticipate that this market probably goes to the 0.78 before anything else.