AUD/USD Price Forecast – Australian Dollar Slows Down Ahead of Jackson Hole

The Australian dollar has gone back and forth during the course of the trading session on Wednesday as we are getting ready to kick off the Jackson Hole Symposium. Traders had sold off the US dollar quite drastically in anticipation that Jerome Powell might suggest that tapering is nowhere near happening, and therefore it will work against the strength of the US dollar. However, there are other things going on as well, so having said that it is worth noting that there is a certain amount of risk appetite that goes along with this currency pair as well.

AUD/USD Video 26.08.21

At this point, the 0.73 level above will more or less be a “ceiling” in the trend, and therefore I think we are looking at a situation where I would be a seller of signs of exhaustion. The 50 day EMA is starting to race towards that area as well, so at this point in time I think we would more than likely continue to see this pair try to go looking towards the 0.70 level underneath. The 0.70 level underneath is an area that has been important over the longer term, and therefore I think it needs to be tested.

However, if we reach above the 0.74 level, then it is possible that we could go looking towards the upside. In that move, we could challenge the 0.75 level, but we probably need to see the Federal Reserve step away from the idea of tapering, and we would have to see a bigger “risk on move” in general. In general, this is a market that I think still has further to go to the downside.

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