AUD/USD Price Forecast – Australian Dollar Running Out of Momentum
The Australian dollar initially rallied during the trading session on Wednesday but gave back the gains to show signs of hesitation yet again. With that being the case, think that the Aussie is going to continue to drift a little bit lower from here, as we may have finally run into a significant resistance. By doing so, it looks like we could roll over again as the market is going to continue to struggle in higher. The 0.74 level above is a major resistance barrier, and therefore I think you need to pay close attention to this market if we do break out to the upside.
AUD/USD Video 14.10.21
A breakdown below the 0.73 level opens up selling again, but it is also worth noting that the 50 day EMA sits right around the same area, so it is possible that it could cause a little bit of support. If we break down below that area, I think the market continues to drop, perhaps looking towards the 0.72 level. On the other hand, if we were to turn around a break above the top of the shooting star from the Tuesday session, that could kick off a move towards the 0.74 level. Breaking above there then would open the possibility of a longer-term “buy-and-hold” experience.
That is a big trade just waiting to happen, but we would also need to see a massive change in the overall attitude of markets, as the US dollar is considered to be a safety currency, and of course the Australian dollar is highly levered to the Chinese economy, which is an area that people are very concerned about.
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