AUD/USD Price Forecast – Australian Dollar Continues to Bang Around in Consolidation

The Australian dollar has gone back and forth during the course of the trading session on Thursday as the market is sitting in a major consolidation region. The 0.74 level has been pierced, and now looks as if it is trying to offer resistance. The real question here is whether or not we can turn around and go higher based upon the consolidation offering support? It is a bit of an open question at the moment, but if we can break above the highs of the previous session, then it is possible that we make another charge towards the 200 day EMA.

AUD/USD Video 10.09.21

Alternately, if we break down below the 0.73 level, then it is likely that this market goes lower. Remember that the Australian dollar is highly sensitive to the global outlook for growth, and of course commerce. Right now, there are a lot of concerns as to whether or not the global economy can continue strengthening, because of the pandemic and of course the fact that the Delta variant is starting to grab a lot of headlines. Australia has started loosened some of its restrictions, so that does help, but at the same time China is slowing down, which is a major problem for the Australian economy.

When you look at the recent action, we had been a bit parabolic, so pulling back and going sideways is still a bullish sign. It is difficult to imagine a scenario where we simply sit still, because quite frankly I think there are far too many issues out there that could come into the picture and cause volatility.

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