AUD/USD Price Forecast – Australian Dollar Has Nowhere to Go

The Australian dollar has gone back and forth during the course of the trading session on Thursday, which has only further cemented the idea of this pair having nowhere to be. Because of this, I think the market is one that you have to look at through the prism of short-term consolidation, and then of course range bound trading. Quite frankly, I do not have any interest in trading this pair until we get some type of momentum, something that is sorely lacking.

AUD/USD Video 28.05.21

To the downside, the 0.77 level should offer a little bit of support, but if we break down below there then the market is free to drop 100 pips. On the other hand, if we can break above the 0.79 handle, then the market goes looking towards the 0.80 level. I think that is going to be more or less dependent on what happens with the US dollar, so with that being the case, I think that the market will be paying close attention to the yields in America and of course comments coming out of the Federal Reserve members, as they have recently suggested that they were “starting to talk about talking about tightening monetary policy.”

Because of this, we could see a little bit of volatility later this summer, but right now this is a market that is simply a short-term traders type of environment more than anything else. Because of this, the market is likely to see lackluster performance, and therefore I prefer the New Zealand dollar currently as it has been moving with a little bit more clarity and certainly looks stronger at this point in time. If you can pull the Australian dollar along with it, it might be a nice buying opportunity.

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