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

The Australian dollar has fallen somewhat hard during the training session on Thursday as we continue to test the 0.77 level for support. Nonetheless, I do think that there is significant buying pressure in this area and as a result I am not expecting a major meltdown, at least not at the moment. All things being equal, we will get the jobs number to push this market in its next direction. Ultimately, I think what we are seeing is a scenario where market participants are looking to buy value and figure out where to go next, as the Australian dollar has been a bit of a laggard compared to other commodity currencies.

AUD/USD Video 04.06.21

At this point in time, I do not really have much of an interest in buying this market, unless of course it is a short-term back-and-forth type of trade. I think that the volatility of the Non-Farm Payroll Friday session can perhaps knock this market around, but until we get some type of impulsive candlestick, I believe that you are wasting your time trying to trade this market unless of course you are scalping it from a range bound perspective.

Keep in mind that the Australian dollar is suffering at the hands of the spat between Australia and China, so that might be something to pay close attention to. Ultimately, this is a market that I think has to make a longer-term decision but quite frankly we are nowhere near doing that right now. There are some people talking about a potential head and shoulders pattern right now, but even a break down below the neckline would only open up a move down towards the massive support level at the 0.76 handle.

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