AUD/USD Price Forecast – Australian Dollar Hangs About 0.75
The Australian dollar has gone back and forth during the course of the trading session on Thursday, as we continue to hang about the 0.75 level. This is an area that of course will attract a certain amount of attention, due to the fact that it is a large, round, psychologically significant figure, and an area that has been important in the past. That being said, we have formed a massive “W pattern”, and it does suggest that we are going higher over the longer term. The US dollar continues to struggle, and the Australian dollar may be playing a little bit of “catch-up” to some of the other currencies out there.
AUD/USD Video 22.10.21
If we break down below the bottom of the candlestick, it is very likely that we continue to see bullish pressure, but perhaps down at the 200 day EMA. On the other hand, if we turn around a break above the top of the candlestick, that would be a very bullish sign for the Aussie dollar and send it on its way. Based upon the “measured move” of the W pattern, we could be looking at a move towards the 0.78 level.
While I have been skeptical of the Aussie dollar for some time, it does make a compelling argument based upon the technical analysis. While China continues to have major issues, that does make me a bit leery of the Aussie, but it is obvious that the markets are ignoring quite a bit of this. With this being the case, the market is very likely to see a lot of volatility, but as long as the US dollar continues to struggle, this could be a place to see volatile upward pressure.
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