AUD/USD Price Forecast – Australian Dollar Pressing Support

The Australian dollar initially tried to rally during the trading session on Monday, but then fell as we got above the 50 day EMA. By doing so, the market is pressing a very important support level just below near the 0.76 handle, because of the monthly shooting star that we formed for February, which obviously is a very negative sign. At this point, it would suggest that perhaps we could be on the verge of a breakdown, but it is not until we make a “lower low” on the daily chart that I would be convinced. At that point, we could see the Australian dollar fall somewhat significantly. Obviously, this would be a major “risk off” type of situation, or perhaps mainly due to interest rates in America spiking again.

AUD/USD Video 9.03.21

At this point, it is worth noting that the 0.80 level above is massive resistance that extends to the 0.81 handle on the monthly charts. If we were to turn around and break above that level, then the market could go all the way to the 0.88 level, possibly even the 0.90 level. Obviously, there is a lot of work to do before that happens, but in the short term that is the prize that everybody is aiming for. If we do break down, then I believe that the Australian dollar will go looking towards the 0.70 level. I do think that we are on the precipice of something rather big, but right now your job is to simply wait to see whether or not we get the move. Once we do, then you can follow the markets.

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