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

The Australian dollar has pulled back during the trading session on Wednesday to test the 50 day EMA. The uptrend line just below also is offering support, and therefore it is likely that we are going to continue to see support underneath. The uptrend line of course is crucial to pay attention to, but if we break down below the most recent low, then it is likely that we could see a bit of a trend change due to the fact that the February candlestick was a massive shooting star. At this point, the market is simply trying to figure out what is going to happen with the interest rates in America, which of course the FOMC announcement and press conference will give a little bit of clarity on.

AUD/USD Video 18.03.21

At this point, there are a lot of concern out there when it comes to the interest rate situation, as it drives up the value of the greenback. Furthermore, we could see a rush into this market, due to the fact that we have seen a massive move to the upside without any significant pullback. That being said, if we do break down from here, we could go as low as 0.70 without changing too much other than offering a nice pullback in what has been a parabolic run to the upside. To the upside, if we can break above the 0.80-0.81 range, then the market is going to take off to the upside and perhaps even go as high as 0.88 over the next several months. All things being equal, we need to make a larger decision rather soon, and I think by the end of the day we could have a little bit more clarity as to where the US dollar wants to go.

For a look at all of today’s economic events, check out our economic calendar.