AUD/USD Price Forecast – Australian Dollar Continues Sideways Action

The Australian dollar has rallied a bit during the course of the trading session on Wednesday to continue the sideways action that we have seen all week. That being said, this is a market that continues to see a lot of volatility, mainly due to the fact that there are a lot of concerns for the Australian economy, as the lockdowns continue. Furthermore, we also have seen strengthening in the US dollar overall, so that of course has its own part of play in this scenario. The 0.75 level above is an area that I believe will continue to be important, especially as the 50 day EMA sits just above it. With all that being said, I think that if the market is going to try to find a floor for the Australian dollar, it has a lot of work to do.

AUD/USD Video 15.07.21

To the downside, the market is likely to see an attempt to break down through the recent lows, opening up the possibility of a drop down towards the 0.70 level longer term. All things being equal, this is a market that is going to continue to be very noisy, but clearly looks threatened by the “H pattern” that we had recently broken down from, and of course the fact that the US dollar itself has shown a proclivity to continue going higher. There has been a bit of a pullback in the greenback during the session on Wednesday, which is probably a major influence on what has happened during the session. All things been equal though, this is still a market that looks as if it is simply “slumping.”

For a look at all of today’s economic events, check out our economic calendar.