AUD/USD Price Forecast – Australian Dollar Rallies After RBA

The Australian dollar has rallied significantly during the course of the trading session on Tuesday to reach towards the 0.76 handle. At this point time, the market is likely to see resistance at that area again, and it is interesting that the market shot higher, only to turn around and drop a bit. At this point, the 200 day EMA is a bit of a bang up for price, as we are going back and forth in this somewhat well-defined range.

AUD/USD Video 07.07.21

If we do clear the shooting star from a couple of weeks ago, then it is possible that we could go to the 0.7750 level. Nonetheless, this is a market that I think is going to continue to struggle, especially if we get some type of negative sign out there. One of the most glaring examples as of late was the Services PMI number in China falling down towards the 50.3 area. Because of this, the market is likely to see a lot of noisy behavior and therefore I think you have to be somewhat cautious about your position size. Nonetheless, it certainly looks as if we are trying to form some type of topping pattern for a longer-term move.

Over the next couple of days, I would anticipate that we should go back and forth in this general vicinity, and with that being the case it is more likely than not to end up in a range bound trading opportunities before we get some type of bigger move. With that, I think that you are going to have to be somewhat cautious in the short term, but longer-term do believe that we will get a tradable event.

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