AUD/USD Price Forecast – Australian Dollar Continues to Hang About 50 day EMA

The Australian dollar has gone back and forth during the trading session on Wednesday to hang about the 50 day EMA, which has been like a magnet for price for the last week or so. That being said, this is a market that I think will continue to see a lot of noisy behavior, but at this point in time I think it is very likely that we are simply killing time between now and the end of the year. In fact, we may have gotten here a little too quickly, so now that we have done some short covering, maybe the market will reassess itself after the new year holiday. We obviously have the jobs number coming out at the end of next week, and that of course will have a major influence.

AUD/USD Video 30.12.21

To the upside, the 0.73 level is significant resistance, just as the 0.72 level will be support. If we can break out of this range that will give us a bit of a heads up as to where we go next. I still favor the downside, but I will let the market make the move first before I start putting money to work. The market has a lot to digest over the next couple of days and start to think about but at the end of the day once we get back to work with full liquidity we will start to favor the longer-term trend more likely than not. Expect choppy and noisy behavior, but at the end of the day we only got about another week before we start to make moves again.

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