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AUD/USD Price Forecast – Australian Dollar Continues to Grind to The Upside

By:
Christopher Lewis
Published: Oct 11, 2021, 13:51 UTC

The Australian dollar initially fell just a bit during the trading session on Monday, but as you can see has turned around to show signs of strength yet again.

AUD/USD Price Forecast – Australian Dollar Continues to Grind to The Upside

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The Australian dollar has rallied after initially pulling back during the trading session on Monday, as we continue to see a lot of noise when it comes to the Forex markets in general. Quite frankly, this point it comes down to which currency you are looking at as to how the US dollar is doing. It is currently skyrocketing against the Japanese yen, but the Australian dollar continues to cause headaches for those who would be long of the greenback.

AUD/USD Video 12.10.21

That being said, the 50 day EMA is right in this area and of course there is a lot of noise between 0.73 and 0.74 that the market will still have to contend with. Because of this, I do think that it is probably only a matter of time before we get a little bit of selling, but if we were to break above the 0.74 handle, then I would have to switch over to be much more bullish. It will be interesting to see whether or not we can break out, because at that point we would be challenging the 200 day EMA as well.

The question now is “Has this been a nice bounce we sell into, or a double bottom?” I think the next couple of weeks could give us a little bit of a “heads up” as to where we are going longer term. I think this is going to be an extraordinarily volatile week, and quite frankly that is saying something considering how choppy things have been as of late. With that being said, I would be cautious, but I am still looking for signs of exhaustion.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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