AUD/USD Price Forecast – Australian Dollar Powers Into Resistance

The Australian dollar has rallied a bit during the trading session on Wednesday, to reach towards the 0.7350 region. This is rate dead smack in the center of the consolidation area that sent this market lower, and therefore you have to pay close attention to what happens next. The 50 day EMA crashing into this area also offers a potential barrier as well, but if we were to break above the 0.74 handle, then it is likely that we go much higher, perhaps changing the overall trend.

AUD/USD Video 02.09.21

Keep in mind that the GDP number coming out of Australia has beat expectations, and that of course is a very bullish sign, and could help propel the Australian dollar to the upside. That being said, we still have a significant barrier to overcome, and of course a lot of noise. Ultimately, any signs of exhaustion will be jumped upon, but we may have a couple of days will to ponder this general vicinity. With that being said, I suspect that the next couple of days could be very telling. This will be especially true as traders come back from holiday, which of course is a major event every year as well.

If we were to break down below the bottom of the candlestick for the trading session on Thursday, the market is likely to break down and go much lower. Ultimately, the next move is probably going to be rather important. Because of this, you need to be very cautious but recognize that we are on the precipice of something rather important as far as the longer-term trend of this market is concerned. With this, we are overbought, but have yet to show signs of falling.

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