AUD/USD long-term outlook
Traders and investors are optimistic that the coronavirus pandemic will end this year. Vaccination progress provides a bright outlook as the rate of new infection and death slowed. If the trend continues to show a positive result then we might see more bullish pressure in AUD/USD.
The pair soon will reach the 0.8000 – 0.8200 resistance area. Traders will observe the pair reaction near the area with the expectation that the bullish trend will continue for the long-term.
The test on the red trendline resulted in a bullish breakout. AUD/USD has broken out above the trendline and currently moving upward toward the 0.8000 – 0.8200 target area. Traders who have long positions will wait until the pair reaches the resistance level and produce a bearish reaction. When a bearish correction happens then traders could consider long positions near 0.7810 and 0.7550.
AUD/USD reached the 0.7810 resistance level and slightly corrected toward 0.7550. The pair then continue its bullish movement and soon will reach 0.8000 – 0.8200 area. Traders will let the pair continue its upward movement and observe the reaction near the resistance area.
Short positions could be taken for the short-term. Traders could use 0.7550 and 0.7810 as levels to enter long positions.
The trend is bullish, the same as the situation on the weekly chart. Traders who have long positions will continue to hold the positions toward 0.8000 – 0.8200 area. Short positions could be taken only when there is a major bearish reaction from the 0.8000 – 0.8200 area.
AUD/USD extremely bullish for now and there is no reason for traders to enter short positions. The nearest resistance area to watch is the 0.8000 – 0.8200 area. Traders who want to enter short positions could use the area with a short-term outlook. It is better to stick with long positions as the overall trend is bullish.