AUD/USD Price Forecast – Australian Dollar Bounces From 50 Day EMA Yet Again
The Australian dollar has seen a bit of a recovery during the trading session on Thursday as the 50 day EMA continues offer slight technical support. All things been equal, this is a market that I do believe eventually wants to go higher but it certainly has been a bit of a fight. With that being the case, it is very likely that we will see the market bounce back and forth in this area as there are a lot of questions about where we go next.
AUD/USD Video 21.05.21
Looking at the chart, if we were to break down below the 0.77 handle, then it is possible that the market could go down to the 0.76 level. Ultimately, this is a market that I think will eventually try to figure out where it wants to go based upon the entire commodity market rally and of course the global reopening trade. After all, the Australian dollar is representative of commodity markets in general, so I think we are looking at the possibility of the Aussie eventually taking off but there are a lot of concerns about coronavirus numbers rising in emerging markets, and of course whether or not there is going to be enough demand for the commodities to justify the price is that we have seen.
Ultimately, the market is essentially digesting what had been a ridiculously parabolic move, one that has taken a couple of months to work through. At this point, I think we are still very much “landlocked” in this area, so I believe we continue the back-and-forth grind that we have seen over the last couple of weeks.
For a look at all of today’s economic events, check out our economic calendar.