AUD/USD Price Forecast – Australian Dollar Continues Recovery

The Australian dollar has rallied again during the trading session on Monday as we have retaken the 50 day EMA. All things being equal, looks as if the market is trying to enter the same range that it has been in, and as you can see the initial selloff has been completely turned around. With that being the case, I like the idea of picking up a little bit of value, but I also recognize that there is a massive amount of resistance near the 0.7380 region. In other words, although it does look very bullish, the reality is that it has not been able to break out to the upside for any significant move as of late.

AUD/USD Video 08.06.21

When you look at both the Monday and the Friday candlestick last week, you can essentially visualize a nice hammer, and therefore it suggests that there is quite a bit of buying pressure underneath and of course it looks as if people are really sticking with it. All things been equal, you should take a look at the 50 day EMA as it is going sideways. Ultimately, that suggests that we are going to see buyers on dips, eventually looking to take out the resistance.

However, keep in mind that the market has been very choppy and therefore I would not hang on to a position for very long. It more or less would be a “back and forth” type of set up until proven otherwise. Commodities have been helping the Aussie dollar, but we also have the trade spat between China and Australia, which of course does weigh a little bit upon the economy but eventually the Chinese are going to have to start buying Aussie coal again.

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