AUD/USD Price Forecast – Australian Dollar Continues to Consolidate

The Australian dollar has rallied a bit during the course of the trading session on Tuesday as we continue to consolidate just below the 0.74 handle. This is an area that has shown itself to be somewhat important, as we continue to drift lower overall. Keep in mind that the market could also be forming a bit of a bearish flag, so that something worth paying attention to as well. After that, you then have to look at the “death cross” that has formed just above the psychologically and structurally important 0.75 handle.

AUD/USD Video 11.08.21

When you look at the chart, you can see that there is a massive area underneath at the 0.70 level, and it certainly looks as if that is a real threat at this point. As far as buying is concerned, I would not do so anytime soon, due to the fact that we have seen so much negativity. The 0.75 level above needs to be clear it on a daily close before I see any type of reason to get long. The US dollar continues to be a major driver of where we go next, not so much the Australian dollar.

At this juncture, I believe that we do go lower and therefore am looking to short any signs of exhaustion after a short-term rally. We have the CPI numbers coming out on Wednesday, which will probably drive where this pair goes next, as inflation in the United States is by far one of the biggest drivers of where currencies are going at the moment. Ultimately, I do believe that by the end of the week we will probably be lower than where we are right now.

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