AUD/USD Price Forecast – Australian Dollar Continues to Grind Sideways

The Australian dollar has gone back and forth during the course of the trading session on Tuesday as we are dancing around the 0.76 handle. The 0.76 level is an area that I think will remain important, due to the fact that we had just formed to monthly shooting star candlesticks, and that is most certainly something that you will have to be very cognizant of. If we were to break down below the hammer from last week, then I think that this market would break apart and go looking towards the 0.71 level over the longer term.

AUD/USD Video 07.04.21

On the other hand, we could rally again, but I would like to see the Aussie break above the 50 day EMA to get involved. At this point in time, as long as we do not break above there, I think the market still is very threatened. Because of this, I have been on the sidelines for a couple of weeks but am watching closely to see if we get a breakout or breakdown. In the meantime, I believe that this is a market that will continue to be very noisy but ultimately will have to make a bigger decision sooner rather than later.

One thing the need to pay close attention to is the 10 year yields, because that has been a major driver of the US dollar as of late, so it is very likely that if we get a bit of a spike in yields, that might be the one thing that sends this much lower. If yields collapse, then we may see the Aussie finally take off again. The meantime it is more or less a holding pattern.

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