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AUD/USD Price Forecast – Australian Dollar Continues to Struggle With Same Resistance Barrier

By:
Christopher Lewis
Published: Oct 25, 2021, 13:52 UTC

The Australian dollar has initially tried to rally during the trading session on Monday but continue to see problems and the 0.75 handle.

AUD/USD Price Forecast – Australian Dollar Continues to Struggle With Same Resistance Barrier

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The Australian dollar has rallied to reach towards the 0.75 level on Monday but continues to find a bit of trouble in this general vicinity. That being said, the market looks as if it is still trying to build up enough momentum to go somewhere, which we simply just do not have quite yet. That being the case, think that the market is trying to build up the necessary momentum, but it just does not have it yet in order to make the breakout.

AUD/USD Video 26.10.21

On the other hand, if we were to break back below the 0.74 level, I think that could suggest an even bigger pullback. At this point in time, I would anticipate that there should be buyers down there, but if we continue to see more of a “risk off move” overall in the markets, then it could send this market much lower, perhaps reaching down towards the 0.73 level.

That is an area that I think will continue to be of interest as well, and it is worth noting that we recently formed a bit of a “W pattern” underneath, which suggests that we are trying to turn things around from a longer-term standpoint, so therefore I think that if we do pull back it is not necessarily going to change the market attempting to break out to the upside, just that it might be able to offer a little bit of value. If we break above the 0.76 level on the other hand, that could send this market much higher, perhaps reaching towards the 0.78 level over the longer term. Expect choppy volatility regardless.

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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