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

The Australian dollar has initially fallen during the trading session on Friday but did recover a bit after the stronger than anticipated employment numbers coming out the United States boosted overall attitudes. The United States added 379,000 jobs for the month of January, as well as dropped unemployment rate readings from 6.3% down to 6.2% for the month. This of course gives more credence to the idea of an overall economic recovery, which should continue to have people looking for the idea of more of a “risk on attitude” coming out of markets.

AUD/USD Video 8.03.21

All of that being said, the February candlestick was a nasty shooting star, so I am a little bit cautious in this area. The 50 day EMA does seem to be acting as an area of interest in general, so if we can turn around and take out the highs from the Friday session, we will more than likely continue to try to go towards the 0.80 level. The 0.80 level has resistance extending all the way to the 0.81 handle, so if we can break above that level, this pair can truly take off to the upside. It will be interesting to see what happens next, because we do have a bit of negativity in this pair due to higher interest rates coming out the United States, but at the end of the day the Federal Reserve is not anywhere near going along with that program, so I do believe that the US dollar strength is still going to be choppy at best. With that in mind, it is important to be cautious with your position size.

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