AUD/USD Price Forecast – Australian Dollar Gives Up Early Gains
The Australian dollar has rallied a bit during the course of the trading session on Tuesday but gave back the gains at the 0.75 level yet again. This is an area that continues to see a lot of resistance built into it, as it is a large, round, psychologically significant figure. Furthermore, as you can see, we have an H pattern that has kicked off, so it does look like we are more likely than not to continue to grind towards the downside.
AUD/USD Video 14.07.21
I believe that we are eventually going to go looking towards the 0.70 level underneath, which is a large, round, psychologically significant figure as well. With that, I think that the continued “lower lows” would more than likely be the most likely of additives that we should continue. Furthermore, Australia continues to lock down the economy, and that of course is a very negative thing for the domestic consumption. With that being the case, the Australian dollar continues to look very toxic and as a result I think we could continue to see downward pressure.
As far as buying is concerned, I would need to see the 0.76 retaken on a daily close, as it would show a complete turnaround and strengthening of this pair. Until then, I look at this as a market that is to be sold on short-term rallies that show signs of exhaustion, because I do believe that we are seen to continue grinding lower of the Aussie. Furthermore, it seems like more money is flowing into the bond market in the United States as yields have been dropping over the last couple months, so you need to pay close attention to that as well.
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