AUD/USD Price Forecast – Australian Dollar Continues Same Behavior
The Australian dollar has initially fallen during the trading session on Monday but then turned around to show signs of life again as the 50 day EMA continues offer support, and perhaps more importantly the 0.77 level. All things being equal, this is a market that I do think that it simply go sideways as there is no real direction at the moment. After all, the Australian dollar is highly levered to the commodity market, and that of course seems like it is perhaps taking a bit of a breather after the recent action.
AUD/USD Video 25.05.21
The 0.77 level being broken to the downside could open up a move down to the 0.76 handle, which is even more supportive. That being said, we have failed to get any real traction in one direction or the other as of late so one has to think that we are perhaps sitting on the sidelines and waiting to figure out what to do about the Australia/China trade spat, and then of course whether or not there is going to be massive inflation or perhaps just the simple reopening trade coming into place. With this being the case, I think that given enough time we will see some type of break out, but right now we clearly do not have it.
To the upside, the 0.78 level would be resistance, and breaking above there could open up the possibility of a move to the 0.80 level, which is the larger resistance barrier that a lot of people are keeping their eyes on. After that, the market could become more “buy-and-hold.”
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