AUD/USD Price Forecast – Aussie Dollar Looking for Support at 50 EMA

The Australian dollar has bounced ever so slightly during the trading session on Wednesday as we are bouncing from the 50 day EMA. The question is whether or not we are going to see a continuation of the uptrend? While this is a good start, the reality is that we are still very much in the middle of a range from the previous session, so I would not get overly excited quite yet. That being said, if we were to break above the highs from the Tuesday session, that might give you a push towards the 0.78 level.

AUD/USD Video 04.02.21

To the downside, I see the 0.75 level as an area of potential support, and I do realize that it is probably only a matter of time before we would see markets reaching towards the 0.78 level. That level has been resistance previously, and therefore I think it will probably continue to be so. However, if we were to break above that level it is possible that we could go looking towards the 0.80 level which is a much more important historic level to pay attention to. Ultimately, I think that what we are looking at here is an attempt to continue the overall uptrend, but a pullback would not necessarily be the worst thing for the bullish traders out there.

I believe that the 0.75 level being broken could open up a move of another couple hundred pips, perhaps down to the 0.7250 level where I think there would be more buyers waiting as well. The US dollar is oversold, so I am trying to keep an open mind as to whether or not we could pull back even further. I do not necessarily have an interest in shorting this pair, but I do recognize that it is possible for a drop.

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