AUD/USD Price Forecast – Australian Dollar Drifts Lower

The Australian dollar has drifted lower during the trading session on Thursday to reach down towards the 50 day EMA. The 0.76 level has also come into the picture, and that is something that a lot of people will be paying attention to as well due to the fact that it is a large, round, psychologically significant figure. The 0.75 level underneath is even more supportive, so I would be even more interested in buying down at that area. Quite frankly, the Australian dollar may have gotten ahead of itself as it is considered to be the “reflation currency” that a lot of traders will be looking towards, and therefore I think that it is probably only a matter of time before we return to going higher.

AUD/USD Video 29.01.21

The 0.78 level above has been significant resistance, and I think this pullback is probably the first attempt to build up the necessary momentum to finally get above there. After that, the Aussie will more than likely make a move towards the 0.80 level, but that is an area that obviously will attract a lot of attention as well. With that in mind, I would be looking for the 0.80 level to be a major barrier. Having said all of that, we need to find buyers between now and then first, so I think that this drifting lower will probably be the potential opportunity that so many people have been looking for. Given enough time, I do think that we break out to the upside based upon the whole idea of the world getting back to normal, but the Australian dollar got way ahead of itself.

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