AUD/USD Price Forecast – Australian Dollar Hugging 50 Day EMA

The Australian dollar has gone back and forth during the course of the trading session on Thursday as we are sitting right on the 50 day EMA. After the hot inflation numbers in America during the trading session on Wednesday, a lot of traders went into the greenback, but it seems as if the reality of the situation is starting to take hold again, as people begin to remember that the Federal Reserve is not going to do anything remotely close to tightening monetary policy this year, perhaps not even next. With that, it does make sense that the Aussie would continue to go a little higher.

AUD/USD Video 14.05.21

All that being said, this is a market that continues to be very choppy to say the least, and I do think that even though a break above the top of the daily range for Thursday would be very bullish, I think it is going to be very noisy to say the least. With that in mind, I do like the idea of buying that breakout, but I also recognize that you will probably have to be very patient with letting the trade workout. The 0.80 level above is the longer-term target, where I see a massive amount of resistance that extends to the 0.81 handle. If we break above there, then the Australian dollar becomes a longer-term “buy-and-hold” asset but right now we have a lot of work to do before we get there. If we do continue to fall from here, there should be a lot of support near the 0.76 handle.

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