AUD/USD Price Forecast – Australian Dollar Pressuring Support

The Australian dollar has initially tried to rally a bit during the trading session on Tuesday as we continue to hang about the 0.76 level. This is an area that of course has offered support previously, and the fact that we are starting to drift a little bit lower suggests to me that we are in fact going to perhaps try to break down. At this point in time, one thing the need to pay attention to is the fact that the February and the March candlesticks are both shooting stars, suggesting that we are in fact going to go lower given enough time.

AUD/USD Video 14.04.21

At this point in time, if we do rally, I suspect that the 50 day EMA will continue to be very resistive, and therefore be an opportunity to start shorting again. I have no interest in buying the Australian dollar in the short term, at least not until we take out the 50 day EMA, and close well above it on a daily chart. The 0.78 level would be the target then, which has been resistance previously. After that, then we would be looking at a potential move towards the 0.80 level.

At the 0.80 level, the market has massive resistance for about 100 points, based upon the monthly charts. If we were to break above there then the Australian dollar becomes a “buy-and-hold” type of scenario, and this market could go looking towards the 0.88 handle at that point. On the other hand, if we do get the breakdown that looks as if it is setting up, we could go as low as 0.71 over the next several months. While that does sound drastic, that is still simply a pullback in a massive uptrend.

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