AUD/USD Price Forecast – Australian Dollar Continues to Consolidate

The Australian dollar has fallen again during the trading session on Friday, as we continue to consolidate just above the 0.76 handle. That being said, it certainly looks as if the Aussie is on its back foot and therefore, I think you need to be a bit cautious about going long at this point. What I find even more interesting is the fact that the February and March candlesticks both would have given you a little bit of a warning recently, as they were both shooting stars.

AUD/USD Video 12.04.21

The question is whether or not the yields in America continue to rise and pull this pair down, or is there something bigger going on? At this point it is a bit difficult to tell but it certainly looks as if something is up. Because of this, I remain a bit skeptical of this move and recognize that we are more than likely going to continue to see significant choppiness. However, if we were to break down below the bottom of the hammer from last week, that could open up significant selling at that point and almost certainly would be a major issue for the Aussie.

When all things are said and done, this is more than likely going to be a relatively big move, and I do think that eventually we break down. However, if we were to reach above the 50 day EMA then it could start to look like things are moving back in favor of Australia again. Rising rates in America are like a wrecking ball for a lot of risk assets, and that will be seeing here as well if that does in fact end up being the case.

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