AUD/USD Price Forecast – Australian Dollar Continues to Attempt to Break Out

The Australian dollar has rallied a bit during the course of the trading session on Wednesday to reach towards the 0.75 handle. The 0.75 handle is of course a large, round, psychologically significant figure, and it would be an area of importance that a lot of longer-term traders are going to pay close attention. If we can break above the 0.76 level, then I think the market could go much higher. The “W pattern” underneath shows a resiliency to this market that should not be underestimated. Quite frankly, I think it is probably only a matter of time before we see a continuation of what has been building.

AUD/USD Video 28.10.21

The 200 day EMA sits near the 0.7433 level and is curling higher. With that being said, it should act as a bit of a “floor the market” going forward, and I think you need to keep that in your mind going forward. The Australian dollar of course is highly influenced by commodities, and therefore should continue to see attention paid to it. If we were to break down below the 200 day EMA, then we could go much lower, perhaps reaching towards the 0.7350 level.

Ultimately, this is a market that I think continues to see a lot of noisy behavior, but also seems to be acting as a market that is trying to build up enough pressure to finally break out to the upside and continue what had been started a couple of weeks ago. It may take some time to make that happen, but inertia continues to build in this general vicinity.

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