AUD/USD Price Forecast – Australian Dollar Pulls Back After a Nice Bounce

The Australian dollar has pulled back a bit during the course of the trading session on Thursday as we await the outcome of the Jackson Hole meetings. At this point, the market has done a lot of short covering, as people are starting to bank on the idea of the Federal Reserve coming to Wall Street’s rescue, keeping monetary policy as loose as possible. With that being the case, the US dollar has taken a bit of a beating during the course of the week, and of course that has been bullish for the Aussie as a bit of a knock on effect. Ultimately, I think this is a market that will try to find its way towards the 0.73 level above, which I believe is going to be very difficult resistance.

AUD/USD Video 27.08.21

I would be a seller of signs of exhaustion, but this candlestick is probably more or less good symbolized as one that is not so much exhaustion, but perhaps a bit of caution. Ultimately, this is a market that I think will find one reason or another to make a big move, probably something to do with the comments coming out of Jackson Hole. If we do break above the 0.74 handle, because I see the 0.73 level as a 100 PIP range of resistance, then it is very likely we will go looking towards much higher levels. Otherwise, I will be looking for opportunities to sell daily candlesticks that have long wicks to the upside. I still think that the market was trying to get down to the 0.70 level, but obviously we could not quite make it. If we start to sell off again, that would be my target.

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