AUD/USD Price Forecast – Australian Dollar Continues Sideways Action

The Australian dollar has pulled back just a bit during the trading session on Monday to kick off the week on its back foot. That being said, it looks to me as if the 0.72 level is going to be a major barrier to get beyond, and as a result until we get above there, I do not think it is going to be easy to get long of this market. That being said, it is also worth noting that we made a slightly “lower low” over the last three days or so.

AUD/USD Video 14.12.21

If we were to break down below the lows of Monday, I think that opens up a move down to the 0.70 level underneath. The 0.70 level course will attract a lot of attention, as it is a large, round, psychologically significant figure. That being said, I like the idea of looking at short-term charts for short-term trades. After all, we are heading into the second half of December, which of course is a time of illiquid markets. In other words, this is a market that probably will not make reliable moves, so therefore I would not put a lot of money into the market, not only in the Australian dollar, but anything else. I do think that we are more likely than not to see selling pressure in general. In other words, like to fade rallies until we can break above that 0.72 level.

If the market breaks above the 0.72 level, then I suspect that the 50 day EMA above could be targeted, but I do not like that trade in general.

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