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AUD/USD Price Forecast – Aussie Dollar Continues to Find Buyers on Dips

By:
Christopher Lewis
Published: Apr 28, 2021, 13:36 UTC

The Australian dollar has fallen a bit on Wednesday but has found buyers yet again underneath as we continue to see the Australian dollar stubbornly push higher.

AUD/USD

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The Australian dollar has pulled back a bit during the course of the trading session on Wednesday but continues to find buyers underneath. The 50 day EMA is a support level that people have been paying quite a bit of attention to, due to the fact that the market has respected it both as support and resistance. With this, the market looks as if it is trying to build up enough pressure to finally break above the 0.78 handle, despite the fact that the monthly candlesticks look rather rough. Remember, the February candlestick was a shooting star, and the March candlesticks was not much better.

AUD/USD Video 29.04.21

If we were to break down below the 0.75 handle, then I think it kicks off a bigger selloff, but right now I do not see it happening anytime soon. However, whether or not we can break above the 0.78 level could be the real question. If we can, then the market is likely to go looking towards the 0.80 level above. That is a large, round, psychologically significant figure that is massive resistance on the monthly chart, that extends to the 0.81 handle. Were to break above that level, then the Australian dollar becomes a “buy-and-hold” type of currency. The Aussie has been a bit of an anomaly, because even though it has been somewhat strong against the US dollar this year, it has a lack some of the other currencies, perhaps due to the fact that the Chinese and the Australians are in a bit of a “tit-for-tat” type of escalation of trade tensions.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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