AUD/USD Price Forecast – Australian Dollar Continues to Test Resistance

The Australian dollar has initially dipped during the trading session on Wednesday, reaching towards the 0.72 level. Furthermore, there is a shooting star that sits right here from last week, and of course the 50 day EMA indicator that is racing towards this area. You could make a little bit of an argument for an attempt at an ascending triangle, or possibly a rectangle. As things stand right now, I believe that there is a high probability that sellers will come into the market assert shorting, but you should also keep in mind that this time a year is typically rather thin, so moves can be erratic to say the least.

AUD/USD Video 23.12.21

To the downside, if we were to break down below the 0.7075 handle, then we could go looking towards the 0.70 level, but right now I think it is probably going to be a bit of a stretch to see this happen. I suspect we are more likely than not to simply go back and forth over the next couple of weeks as traders run out the clock between now and the end of the year. Most people are going to be worried about holidays instead of trading, and that will be shown on the charts as such. All things been equal, I think the big move probably comes in the month of January, so at this point in time if you are a short-term trader, you could do a little bit of back-and-forth trading, but that is probably as good as it gets over here in the Aussie dollar. Regardless, keep your position size somewhat small, in case a sudden spike in illiquid conditions happens.

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