AUD/USD Price Forecast – Australian Dollar Continues to Find Support at Bottom of Range

The Australian dollar has rallied a bit during the course of the trading session on Tuesday, as the 0.71 level continues offer significant support. That being said, the market is simply bouncing around between there and the 0.72 level above, which is significant resistance. As we are heading into the holiday season, liquidity will be an issue and therefore I think this market probably has nowhere to be anytime soon. With this, the 50 day EMA is racing towards that 0.72 level, so that adds even more downward pressure on any bounce.

AUD/USD Video 22.12.21

At this juncture, I do not expect anything along the lines of a big move, but there is the possibility that a lack of liquidity could be taken advantage of if there is some type of sudden headline that causes issues. If that is going to be the case, then we could suddenly rates a couple hundred pips. That being said, the market is one that you need to be cautious with, so this time a year typically do not put a lot of money into the markets this time a year, choosing to trade smaller positions just in case something happens.

Quite frankly, this time a year you need to be cautious, because a lot of people will be closing out books for the year, and of course a lot of people simply will not be involved in the market. In other words, if somebody does come in and have to move a large amount of currency, it can run a lot of stops. Be cautious, but right now it looks like we are going sideways.

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