AUD/USD Price Forecast – Australian Dollar on The Precipice of Breakdown

The Australian dollar has broken down significantly during the trading session on Friday to break through the 200 day EMA. The question now is whether or not the market will continue to see people pay close attention to this area, so if we were to break down below there, then it would likely send this market crashing. I would anticipate a move down to the 0.70 level at that juncture, but I also recognize that we have fallen so hard so the question is whether or not we can continue to see this momentum?

AUD/USD Video 21.06.21

With Friday being “quad witching” in the options market, there are a lot of potential issues out there when it comes to volatility. Because of this, the Friday candlestick could be kind of wild looking but that 0.75 barrier has been crucial for some time, and it is of course a large, round, psychologically significant figure. However, if we were to turn around and recapture the 200 day EMA, then I think the market probably goes looking towards the 0.76 level again. That being said, it is looking very unlikely that we are going to recover.

However, I would make that decision at the end of the day on Friday. Jumping into a trade heading into the weekend is one of my least favorite things to do, so it will be interesting to see how this plays out. I will have more for you on Monday because the next move will be more than likely at least 200 pips, possibly even as much as 500.

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