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

The Australian dollar initially rallied during the trading session on Tuesday as traders were focusing on the RBA statement. That being said, the market is likely to continue to see plenty of support underneath, especially near the 0.77 handle as essentially nothing has changed. In fact, that is an area that I think has been rather important more than once, so I do like the idea of paying close attention to it as a potential buying opportunity. If we were to break down below there, then the next support level is 100 pips below.

AUD/USD Video 02.06.21

To the upside, the 0.78 level is significant resistance, and I think what we will see here then is an attempt to break out. If we do break out above there then it is likely that we could go looking towards the 0.80 level, but that is an area that I think is going to take a lot of effort to get above. In the short term, it is likely that the market continues to see a lot of choppy behavior without any real directionality when it comes to where we are going next, as I believe most of the summer will probably be range bound trading. Keep in mind that Australia is being punished due to the fact that over its spat with China when it comes to trade.

It is also worth noting that the commodity market has been a bit strong in some sectors, while a little bit stagnant and others. I think this continues to cause a lot of choppy behavior here, so I do not have any interest in trying to put too much money to work here unless of course I am trying to scalp on short-term charts.

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