AUD/USD Price Forecast – Aussie Dollar Recovers Slightly on Wednesday

The Australian dollar rallied a bit during the course of the trading session on Wednesday to reach towards the 200 day EMA. That being said, the market is still very much threatened to the downside, and it certainly looks as if it is ready to continue falling given enough time. In fact, it seems as if it only needs a slight “push” to make it breakdown. If that is the case, it could open up an attack on the recent lows, which by extension could open up a move all the way down to the 0.70 level. Looking at the chart, you can see that it has been very noisy in this area, so I think we are in the midst of trying to figure out where we are going for a much bigger move.

AUD/USD Video 08.07.21

If we were to break above the 0.76 handle, then it is possible that the market could go looking towards the 0.7750 level, which is the next major selloff area. Obviously, if we can break above the top of the massive candlestick from the Tuesday session that would be a very bullish sign. That being said, it looks very unlikely, so I still favor the downside with anticipation of some type of break down.

This is not to say that you should pile in with massive amounts of money, just that at this moment it certainly looks as if the momentum is still to the downside so at this point in time it makes quite a bit of sense that it, we would continue to see a lot of indecision and back-and-forth trading, as the support level underneath is so crucial.

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