AUD/USD Price Forecast – Aussie Dollar Fighting 200 Day EMA
The Australian dollar has rallied again during the trading session on Friday to show signs of strength but is starting to struggle a little bit with the 200 day EMA as I write this. Because of this, I think it is very likely that the market will continue to see a bit of hesitation, and it is worth noting that we are just above the 0.74 level, an area that has been important more than once. Because of this, it would not surprise me at all to see a little bit of a pullback at this point. However, if we do close above the 200 day EMA, then I think the market is primed to go much higher.
AUD/USD Video 18.10.21
More than anything else, I think the market has simply gotten ahead of itself and it is likely to see a little bit of trouble. With that in mind, I do believe that it is probably a scenario where you look towards the upside, but you may need a little bit of a pullback in order to take advantage of the trend that is trying to form. That being said, if we were to pull back below the 50 day EMA, it could change everything and send this market lower.
While most commodity currencies are certainly going very well against the US dollar, Australia is still a closed economy for the most part. That does not help the situation here, and of course as a result it does make this market a bit riskier than something like the Canadian dollar which has oil backing it up.
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