AUD/USD Price Forecast – Australian Dollar Sitting on 50 Day EMA

The Australian dollar has initially tried to rally during the trading session on Tuesday but then pulled back from the 200 day EMA again. That being said, the market also found support at the 50 day EMA again, so it looks very much like a market that is currently squeezing. Both of these moving averages of course will attract a lot of attention, so I do think that the market will continue to be very noisy. The hammer that formed during the Friday session of last week continues to support the market, so I do think that it is probably only a matter of time before the buyers come in and pick this market back up.

AUD/USD Video 10.11.21

All things been equal, if we can break above the 200 day EMA, I believe that the Australian dollar will continue to try to go looking towards the 0.75 level above. That being said, the market will more than likely continue to see a lot of choppiness. On the other hand, if we were to break down below the bottom of the hammer, then it is likely that we could go looking towards the 0.73 handle. Keep in mind that the Australian dollar is highly correlated to the commodities markets, so of course you need to pay close attention to what is going on with hard commodities around the world, and of course you also need to pay close attention to the US Dollar Index. With all that being said, I think the market is going to continue to see a lot of noisy behavior, but it does look like it is trying to pick up a certain amount of momentum.

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