AUD/USD Price Forecast – Aussie Dollar Continues to Hover Around 50 Day EMA

The Australian dollar has rallied a bit during the trading session on Tuesday to solidify its grasp on the 50 day EMA. That being said, the range of the candlestick is not that impressive, and basically I think the market is just happy sitting right around the 0.7250 level and the 50 day EMA more than anything else. We do not have anywhere to be, and probably will not have much in the way of momentum between now and the beginning of next month, perhaps even when the jobs number comes out.

This is a very thin time of year, so it is hard to imagine somebody jumping into the market and putting huge orders and right now. It is because of this that most professional traders simply step away from the market this week, but I know that there are plenty of retail gamblers out there who are willing to step in. Unfortunately, I have seen quite a few accounts get wrecked by that mistake.

AUD/USD Video 29.12.21

At this point, if we pull back I think the 0.72 level is support, and I believe that the 0.73 level above is significant resistance. From what I see, it is very likely that I will be looking for signs of exhaustion above to start selling again, but I do not think that trade sets up until sometime next week. We have had a nice bounce, but we have yet to turn the entire trend around, so that is probably something you need to keep in the back of your mind.

For a look at all of today’s economic events, check out our economic calendar.