AUD/USD Price Forecast – Australian Dollar Pulls Back SlightlyAustralian dollar has pulled back slightly on Wednesday, but what I am keeping a close eye on is the fact that the February candlestick was a shooting star.
The Australian dollar initially tried to rally during the trading session on Wednesday but gave back early gains to drift back below the 0.78 level by the time New York got on board. Nonetheless, we are looking at the 50 day EMA underneath as a potential support level. The 50 day EMA is grinding higher, so therefore it is possible that we would see that area offer support yet again. However, it may not be that simple when you look at the longer-term charts.
AUD/USD Video 4.03.21
The monthly candlestick for February was a shooting star, so the question is “Are we about to change the overall trend?” This is something to be very cautious about because it would imply that we could see a major shift in the overall attitude of markets globally. That being said, it does make sense that we pulled back from the 0.80 level, as it is a major pivot point for the longer-term charts, even on the monthly timeframe. In other words, if we can break above the 0.81 handle, which is the top of that range, then the market could go much higher, perhaps as high as the 0.90 level it would certainly be a longer-term “buy-and-hold” situation that could be very influential when it comes to Forex markets in general.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Furthermore, I think that it will be a “add on the dips” type of situation if we do break out. On the other hand, if we do turn around and break down below the 0.76 handle, we could very well find this market dropping a couple of handles pretty quickly.
For a look at all of today’s economic events, check out our economic calendar.