AUD/USD Price Forecast – Australian Dollar Pulls Back

The Australian dollar has pulled back just a bit during the trading session on Thursday to show signs of hesitation. The 0.72 level course is an area that has been important more than once, and therefore it does suggest that we are going to continue the longer-term trend. We had gotten a bit overdone over the last couple of days, so this does make a certain amount of sense, as the market was bouncing from a significantly oversold condition.

AUD/USD Video 10.12.21

All things been equal, if we can break above the 0.72 level, then the market is likely to go looking towards the 50 day EMA. If we continue to see signs of exhaustion, then it is very likely that we could go looking towards the 0.70 level again, as the market has tried to break through that psychologically important level. Pay close attention to the interest rates in the United States because that of course will have its say when it comes to this market, because as they increase it is very likely that the market would then continue to favor the greenback. All things being equal, this is a market that will continue to see a lot of volatility.

You should also keep in mind that the Australian dollar tends to be very sensitive to risk appetite, so let us see how that goes as well. It does not look like the market is ready to rollover quite yet, but that short-term pullback might be a blip as we continue to go higher and look for even more selling pressure.

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