AUD/USD Price Forecast – Australian Dollar Clinging Onto Support Level

The Australian dollar has dipped initially during the trading session on Thursday as the 0.75 level continues to attract a lot of attention. Later in the session, the buyers came back into pick up the market and reach towards the 0.75 level, but we also have the 200 day EMA above offering resistance that could come into play. The 0.75 level is a crucial area for this market, and this should not be forgotten. This is a major support level that if it gets broken through completely, could open up a massive amount of selling in the Aussie dollar.

AUD/USD Video 02.07.21

One of the main reasons why the Australian dollar may have bounced just a bit is the fact that the jobs number comes out on Friday, so it more or less is probably going to be a scenario where the market is simply trying to get flat ahead of that position. All things being equal, this is still a market that I like fading short-term rallies, at least until we can take off and recapture the 0.76 level on a daily close. At that point, I might have to rethink the entire situation, but it certainly looks as if the Aussie dollar is starting to roll over, and therefore we could very well see this market go looking towards the 0.70 level over the next several months.

There is the problem with the Australians locking people down again, which of course does nothing good for the economy. Beyond that, the Federal Reserve may have to start tightening much quicker than many of the other central banks around the world, and if that is the case it will continue to favor the greenback.

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