AUD/USD Price Forecast – Australian Dollar Continues to Chop Back and Forth

The Australian dollar initially rallied during the trading session on Wednesday as we continue to see hope slip back into the markets. Having said that, we have also given back some of the gains above the 0.74 level, so it does suggest that perhaps we may have a bit of ugliness ahead of us. If that is going to be the case, then the Aussie dollar will be one of the first currencies that people sell. Looking at this chart, I believe that there is a significant amount of resistance between the 0.74 level and the 0.75 level.

AUD/USD Video 05.08.21

Speaking with the 0.75 level, which is an area that I think will be very difficult to break above, not only because it is a large, round, psychologically significant figure, but it is also where we see the “death cross” forming just above it. With that in mind, I think it is only a matter of time before sellers will jump all over this pair if we got to that region. On the other hand, we could break down below the 0.73 level, and that could be reason enough to start selling as well. With that in mind, I believe it is only a matter of time before a move to the 0.70 level would be happening on a breakdown. In fact, I would expect the selling to accelerate at that point.

When you look at the longer-term chart, the 0.70 level is an area that I think will be important and it does make a nice target for the sellers to aim for. With this, I think we continue to drop over the longer term.

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