AUD/USD Price Forecast – Australian Dollar Pressing Resistance Barrier

The Australian dollar has rallied again during the course of the trading session on Thursday to reach towards the crucial 0.73 handle. That is an area of course that I think a lot of people will be paying attention to, as we have seen it be important multiple times in the last few days. Furthermore, the 50 day EMA is reaching down towards this area as well, so that is yet another reason from a technical analysis standpoint that suggests we should have selling pressure coming rather soon. The market breaking above the 50 day EMA would of course attract a certain amount of attention.

AUD/USD Video 08.10.21

On that move above the 50 day EMA, it is likely that the market goes looking towards the 0.74 handle, an area that was the top of the overall range that the market had previously been involved in, so I think it is really not until we break above that area that the market is likely to continue to go higher. With this in mind, I think it also makes a certain amount of sense that we do not go anywhere between now and Friday, due to the fact that the Non-Farm Payroll announcement comes out during that session, and it will more than likely keep the markets on edge between now and then.

Keep in mind that Australia is highly levered to China, so that of course makes quite a bit of external pressure to be felt. The Chinese situation right now is tenuous at best, so it will be interesting to see how this plays out over the next several weeks, and as a result I think we probably still have a significant amount of downward possibilities.

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