AUD/USD Price Forecast – Australian Dollar Sitting Around 0.73

The Australian dollar has rallied just a bit during the course of the trading session on Friday, but as you can see it is but a blip on the radar when it comes to the massive selloff that we had seen. The 0.73 level is an area that a lot of people are paying attention to, but it is only a minor area. You can see that it previously had been resistance, so the fact that we offered a little bit of support in this general vicinity does make a certain amount of sense, and perhaps a little bit of a recovery is noted to be obvious, so at this point in time I think that rallies will be sold into, but we may need to bounce a little bit in order to drive more short-sellers into the market.

AUD/USD Video 15.11.21

The choppy behavior should continue to be a case, so having said that I think we only have a matter of time before something comes into this market to not get back on its back. The 50 day EMA above is sitting at the 0.74 level, so I think that is about as high as we could bounce. Quite frankly, interest rates could continue to play a major part of this trade as well, so keep an eye on the 10 year yield in America. Furthermore, Australia continues to suffer at the hands of the China issues, and the fact that production is slowing down. Remember, Australia is a commodity driven economy, so you should continue to see that play out. All things been equal, I am looking to short this market on short-term rallies that show signs of exhaustion.

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