AUD/USD Price Forecast – Australian Dollar Continues to Look Lamp

The Australian dollar has initially tried to rally during the trading session on Thursday but gave back the gains to show more lackluster performance. Now that we are trying to break down below the 0.76 handle, this could be the harbinger of a much bigger move to the downside. Remember, the February candlestick was a massive shooting star, and that does suggest that we are going to continue to selling pressure on short-term rallies and/or a break lower. In fact, that could send the market down towards the 0.72 handle.

AUD/USD Video 26.03.21

If we were to break above the candlestick from the Wednesday session, that might cause a little bit of a bounce, but I would anticipate a lot of resistance at the 50 day EMA as well. It certainly looks as if the Australian dollar is trying to break down a bit, and you could even make an argument for a bit of a head and shoulders trying to break down as well.

Keep in mind that the US dollar has been strong against almost everything, and as interest rates in America continue to climb, I think that could continue to be a major issue. Furthermore, Australia has to worry about a bit of a trade war brewing as they are so highly levered to China. The commodity market has been a little soft over the last couple of days, so it is very likely that the Australian dollar will continue to have some major issues. That being said, even if we did drop down to the 0.72 handle, we are still very much in an uptrend when you look at the last year.

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