AUD/USD Price Forecast – Australian Dollar Reaches Above 50 Day EMA

The Australian dollar initially fell a bit during the course of the trading session on Friday, but then turned around to rally and reach above the 50 day EMA after the jobs number had failed to reach the consensus number. This of course had the US dollar selling off quite drastically in a short amount of time, but when you look at the reaction, it was a little less enthusiastic then you would anticipate. The 50 day EMA of course is an indicator that a lot of people pay attention to, and now there is a question as to whether or not the Federal Reserve is going to taper in November, or if they are going to wait for December or even January.

AUD/USD Video 11.10.21

At this point in time, the market is likely to see a lot of support underneath though, so I think we just continue to chop around in general to try to figure out the longer-term attitude. The markets will continue to be volatile and choppy, as we try to figure out where to go next. The Australian dollar of course is heavily influenced by China, and that is something that we need to be very cognizant of. With that in mind I think you continue to see a lot of choppy volatility as there are concerns coming out of China.

Nonetheless, this is a market that if we can break above the 0.74 level, I would change my attitude and start buying again. In general, this is a market that you will have to be cautious with your position size, but longer-term I think you probably have a potential trade setting up, and we need to see some type of impulsive candlestick in order to get aggressive.

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