AUD/USD looks to hold a break above 0.7600 now
The dollar is trading in a rather vulnerable spot at the moment as we see further breakouts from a technical perspective across the board. For AUD/USD, it is threatening a firm breach above 0.7600 now - its highest levels since June 2018.
Looking at the chart, there really isn't much stopping the pair from a potential move towards 0.8000 (as pointed out here) as long as the current market theme persists.
As things stand, the pair is on the hunt for a seventh consecutive week of gains.
There is some minor resistance from the June 2018 high @ 0.7677 but barring any major setback to the risk narrative, it is tough to fight the underlying momentum.
Sure, there might be a time when we see a sharp and deep pullback. After all, the short dollar trade is surely becoming the consensus trade in the market going into 2021.
And consensus trades are sometimes one of the most dangerous.
But with the Fed continuing to deliver a message like the one yesterday, it is hard to go against a market flooded with easy money and one that continues to be forward-looking.
Adding to the break in risk trades, AUD/JPY looks to be trying to firmly clear the 31 August high of 78.46 as well as price now trades to 78.67.
