AUD/USD Price Forecast – Aussie Dollar Continues to Sit On 50 Day EMA

The Australian dollar initially fell during the trading session on Wednesday to reach towards the 50 day EMA, only to turn around and form a slightly supportive candle. All things being equal, it looks as if we are ready to continue to go back and forth and build up enough inertia to finally get going in one direction or the other. When you look at the longer-term charts, there is a shooting star for both February and March, which of course Lynn’s the idea of a negative move, but the market has been extraordinarily resistive to that.

AUD/USD Video 22.04.21

Because of this, I think we continue to go back and forth in this relatively tight consolidation area until we can figure out where the real momentum is going to end up being placed. If we break down below the 50 day EMA, I believe that the market then goes looking towards the 0.76 handle, possibly even down to the 0.75 handle. On the other hand, if we break above the top of the candlestick for the Wednesday session it is very likely that we go looking towards the 0.78 handle, which opens up the move to the 0.80 level given enough time.

The Aussie of course is all about the opening trade when it comes to post pandemic economic expansion, as the Aussie is so highly levered to commodities and the risk appetite of traders around the world. This is going to be a “push pull” situation until we get some type of clarity.

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