AUD/USD Price Forecast – Australian Dollar Continues Correction
The Australian dollar has pulled back towards the 0.7750 level during the trading session on Friday to reach down towards the 50 day EMA as well. This is an area that we recently have broken out of, so I would expect to see a little bit of a pushback by bullish traders in general. At this point time, the market is likely to continue to go to the upside, but the 0.80 level above is a massive barrier that is seen on monthly chart. It is a 100 point range, so if we were to break above the 0.81 level, it could send this market much higher. In fact, that could be a major move just waiting to happen on the higher time frames.
AUD/USD Video 1.03.21
However, if we were to turn around a break down below the 0.75 handle, something that we are nowhere near doing quite now, then you could see a real turn around, but at this point in time it is very unlikely to happen. The size of the candlestick does suggest that there has been a bit of clearance, but I have been saying for a while that I did not think that we are going to simply slice through the 0.80 level. I thought that there could be a need to pullback multiple times in order to find enough momentum to finally smash through that upward barrier. One of the main problems that we have seen is that the US dollar has seen a little bit of strength due to interest rates rising in the United States. That being said though, it is a short-term phenomenon.
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