AUD/USD Price Forecast – Australian Dollar Running into Resistance

The Australian dollar has initially tried to break out to the upside during the trading session on Tuesday but has failed at the 0.78 level yet again. Ultimately, this is a market that is getting close to a major resistance barrier, so it is not a huge surprise to see that we are going to struggle here. It has been rather impulsive as of late, and therefore it is not a huge surprise to see that maybe we do not have the necessary momentum to break out. That is not to say that we cannot eventually, just that it is going to be difficult to simply slice through this area.

Looking at the chart, the 50 day EMA underneath could offer a significant amount of support, so I do believe that it is only a matter of time before we reach down towards that area. This is assuming that we cannot simply break out. If we do, then obviously it is a huge move in favor of the Aussie and could send this market looking towards the 0.80 level, which I do think will be a major barrier to overcome.

I think it is only a matter of time before we would see a longer-term “buy-and-hold” move if that does in fact happen. In the short term, I believe that we continue to bounce around and perhaps pull back ever so slightly. I think that we have some “wood to chop” in the meantime in order to continue the overall push higher. Keep in mind that yields in America are starting to pick up a bit, so that of course causes some issues as well.