AUD/USD Price Forecast – Australian Dollar Continues to Recover

The Australian dollar has rallied a bit during the course of the trading session on Thursday as we are approaching the 0.76 handle. Ultimately, this is a market that I think continues to see a lot of return to bullish pressure given enough time, especially as the market gets used to the idea of the recovery and of course the Federal Reserve walking back is bullish tone. If that is going to be the case, that should help just about anything against the US dollar, let alone the Aussie dollar which of course is highly correlated to commodities and the reopening trade.

AUD/USD Video 25.06.21

Underneath, the 200 day EMA sits right in the middle of the latest cluster, and it does suggest that we are going to see a certain amount of noise around this area. If we can recapture the 0.76 level, then it is likely that we will probably go looking towards the upside, perhaps reaching back towards the 50 day EMA. Pullbacks at this point in time could be an opportunity to pick up a little bit of value, but I would also keep in mind that it is probably going to be somewhat noisy on the way up, so I certainly would not get overly large with my position.

The Australian dollar of course is highly correlated to commodities, so keep an eye on those in general, as it could give us a bit of a “heads up” as to where we are going over the next several weeks, but it certainly looks as if the market is trying to recover. A breakdown below the recent lows could of course open the trapdoor to much lower pricing though, so keep that in the back of your head.

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