AUD/USD Price Forecast – Australian Dollar Gives Up Early Gains

The Australian dollar initially tried to rally during the trading session on Tuesday but gave back the gains rather quickly to pull back. All things being equal, this is a market that looks as if it is trying to take out the lows underneath, and if we do it could be a sign that we are going to go much lower. At this juncture, it could send this market down to the 0.71 handle, based upon the measured move of the head and shoulders pattern that we are breaking down below.

AUD/USD Video 31.03.21

Furthermore, the monthly candlestick for February in the Australian dollar has been a shooting star, which of course is a very negative sign. Breaking down below that candlestick of course kicks off a longer-term selling pressure as well, and it is also possible that the market is going to pay close attention to interest rates going forward, which continue to rise in America, thereby making the US dollar much more interesting.

Rallies at this point in time will be looked at with skepticism, and therefore I think that rallies are to be sold. In general, I do think that the Aussie dollar is living on borrowed time, and the spat that the Australian suddenly find themselves in with the Chinese certainly will do anything to endear Forex traders to the currency. With this in mind, I think that we are probably going to go much further to the downside at this point. Suddenly, the US dollar is starting to flex its muscles yet again.

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