AUD/USD Price Forecast – Australian Dollar Continues Sideways Chop

The Australian dollar has rallied just a bit during the trading session on Wednesday to kick off the day, as the market is likely to see a lot of choppy behavior as we are hanging around the 50 day EMA. The 50 day EMA of course is significant as so many traders around the world pay close attention to it. Ultimately, the market is likely to see of questions to be asked in this area, as the Australian dollar simply does not seem like it has catalyst to get out of the area that we are sticking around.

AUD/USD Video 17.06.21

All things been equal, I believe that the market stays in the same consolidation area that we have been in for a while, and I just do not see the catalyst to get out of it yet. With that, I like the idea of playing the range, but quite frankly only on short-term charts. If we can break above the 0.7850 level, then we might make a run towards the 0.80 level, just as to the downside if we can break down below the 0.75 handle, we might make a significant move down to the 0.70 level.

I do not see that happening unless of course the Federal Reserve suddenly starts to talk about tapering. If they do, that could shock the market and catch everybody on the wrong side of the move, but I have a hard time believing that they will do so. Talk about tapering is probably still a few months away at this point in time, so I think that this will return to the status quo after the announcement.

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