AUD/USD Price Forecast – Australian Dollar Gaps Lower

The Australian dollar has gapped lower to kick off the trading week, only to see a bit of strength to fill the gap. At this point, we are checking out the 50 day EMA for support, and so far, it has held. Having said that, we are still very much in an uptrend but there has been a lot of the volatility here that we have seen everywhere else. At this point, I think that the 0.80 level above is going to be a major resistance barrier that extends to the 0.81 handle which has been important on monthly charts, being both support and resistance so at this point in time it is worth watching closely.

AUD/USD Video 23.03.21

If we were to break above the 0.81 handle, that changes everything and we probably go much higher. However, if we were to break down below the 0.76 handle, that would kick off significant selling in the this market as it would break down below the shooting star from the February candlestick. If we did do that, the market would probably go down to the 0.71 handle.

In general, this is a market that continues to be very noisy, and therefore it is likely that the market will continue to see a lot of back and forth sideways action more than anything else, but I do think that it is only a matter of time before we have to make a longer-term decision. At that point, this is a market that will be much easier to trade, but it is worth noting that we have been parabolic for quite some time until the last two months. Pay attention to the US bond markets, that will probably lead the way.

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