AUD/USD Price Forecast – Australian Dollar Continues Overall Grind

The Australian dollar has initially tried to rally during the trading session on Monday but give back the gains to show less than enthusiastic momentum. At this point, we are sitting just above the 50 day EMA so I do think that we could see a little bit of support based upon that, or perhaps the short term uptrend line that I have marked on the chart.

AUD/USD Video 16.03.21

One thing that is worth paying attention to is the shooting star from the month of February suggests that we could break down, but at this point in time I think if we take a look at the daily chart, you can see that almost all of the selling was due to the yields spike in the United States. Furthermore, it was also just a couple of days, so you have to question whether or not it is the real deal at this point. That being said, if we were to break down below the 0.76 handle, then I think we could see a bigger move to the downside. This will be especially true if we get yields rising in America, which will drive up the value of the greenback in general.

Recently, we have seen the Australian dollar gained quite drastically due to the commodity markets rallying, but furthermore we also have to take a look at the longer-term charts where the 0.80 level is massive resistance. In fact, that resistance extends to the 0.81 handle, it is clearly seen on the monthly charts. If we were to break above that 0.81 level though, it would become a major “buy-and-hold” market where I would anticipate a move towards the 0.88 handle.

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