AUD/USD Price Forecast – Australian Dollar Continues to Look Very Threatened

The Australian dollar initially tried to rally during Asian trading on Friday, but as you can see has given back quite a bit of the gains. By doing so, it suggests that the market is probably going to break down again, and if we can break below the 0.74 level, I will be adding to an already short position in this pair. As you can see, the 50 day EMA is reaching towards the 200 day EMA to form the so-called “death cross” that some longer-term traders pay close attention to.

AUD/USD Video 19.07.21

We have also formed a significant “H pattern” if you weeks ago, but still looks very likely to be important. That being said, the market is more than likely going to continue to see more of a “fade the rallies” type of situation, and once we break down below the 0.74 level, I think that we will see the Australian dollar fall much quicker again, as it will be a breaking of significant support. At that point in time, I would anticipate that the market is more than likely going to see an acceleration in momentum, as we continue to grind towards the 0.70 level.

As Australia continues to lock areas of the country down, this can do no good for the economy. It has been New South Wales initially, but now Melbourne is also being locked down for the same Covid reasons. With that being the case, I just do not see how the Aussie picks up any momentum anytime soon, especially as the US dollar itself has seen significant buying pressure against multiple currencies over the last several weeks.

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