AUD/USD Price Forecast – Australian Dollar Sits Just Below 50 Day EMA

The Australian dollar has rallied a bit during the trading session to reach towards the 50 day EMA on Monday, as we continue to see the area underneath offering significant amount of support. On the other hand, if we were to turn around a break down below the 0.77 handle, it is likely that we could go down to the 0.76 level. That is an area that I think significant support is found all the way down to the 0.75 handle. Breaking down below that level could send this market much lower, perhaps kicking off a bit of a downtrend.

AUD/USD Video 01.06.21

All things been equal though, I believe that this market is going to continue to go back and forth, and you have to look at this through the prism of consolidation. The 0.80 level above is a massive resistance barrier on the monthly charts, so if we can break above there then we could really go higher, perhaps breaking out for more of a “buy-and-hold trade.” That being said, we have not seen anything to suggest that we are ready to do that in the short term, so I think we continue to see more noise back and forth.

That being said, I think that the market is going to be more consolidation than anything else, so you have to keep looking at this market through a short-term back-and-forth type of prism, allowing short-term range bound traders to make decent profits but for those who are more or less looking for a trend, this might not be the place to go.

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