AUD/USD Price Forecast – Australian Dollar Continues to Grind in The Same Consolidation

The Australian dollar initially tried to break above the 50 day EMA but then turned around to show signs of exhaustion again. The 0.77 level is an area where a lot of people would be in close attention to as it has been important support multiple times. The question now is whether or not we do break down, because that would kick off a little bit of a small head and shoulders pattern. If that happens, we probably go looking towards the 0.76 handle, not a big move, but simply a move to the bottom of the overall consolidation region.

AUD/USD Video 31.05.21

The 50 day EMA has been rather important as of late, but it has been pierced multiple times, so I do not read too much into the idea of breaking down below it. I recognize at this point in time it is likely that we continue to see more noise than anything else, especially as we head into a quiet time of year typically. We do have the jobs number at the end of the week next week, so this could be quiet between now and then. If we do break down though, I do not suggest that we go much further than the next support level down there at the 0.76 handle, because quite frankly the Australian dollar does not seem like anything to do right now. It is highly tied to that reopening trade, which is starting to run out of steam again. Nonetheless, the Friday close could give us a hint as to which one of these tiny little consolidation areas that we are trading in.

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