AUD/USD Price Forecast – Aussie Continues Tight Range

The Australian dollar initially tried to rally during the trading session on Thursday but gave back the gains to continue to show the market a bit hesitant to continue going higher. All things being equal, this is a market that continues to see the 0.78 level as extreme resistance. However, the 50 day EMA underneath continues offer support, so it is a bit of squeeze at the moment. The Australian dollar is obviously tied to risk appetite in general, so it is worth paying close attention to the overall market conditions when trading this pair. If we were to break down below the 50 day EMA, it would probably come with a general “risk off” type of situation.

AUD/USD Video 23.04.21

On the other hand, if we break above the 0.78 level, then it is likely that we could go looking towards the 0.80 level above. The 0.80 level above is a massive resistance barrier, that extends to the 0.81 handle. In general, the market looks as if it simply wants to chop back and forth and is looking for some type of catalyst to get going. With that being the case, you probably need to pay more attention to the US dollar than the Aussie dollar, as it is the main driver at the moment.

Yields in America could be a factor, but there are also concerns about coronavirus infections around the world picking up again. If they continue to do so, the idea of the global reopening trade may take a bit of a hit, and that would be negative for this market. For what it is worth, the February and March candlesticks both were shooting stars.

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