AUD/USD Price Forecast – Australian Dollar Slumping

The Australian dollar has initially tried to rally during the trading session on Thursday but gave back the gains in order to show signs of weakness. At this point, the market is dancing around the 200 day EMA, so it will be interesting to see how this plays out. The 50 day EMA is sitting just below and offering a bit of support. At this point in time, the market is likely to see a big fight right around the 0.74 level, an area that has been important more than once. Recently, the reserve Bank of Australia sounded very dovish, and that has had the Aussie on the back foot most of the week. That being said, things have slowed down, so I think that by the end of the day on Friday we should have a bit more clarity, especially after the jobs number comes out in the United States.

AUD/USD Video 05.11.21

A daily close below the 50 day EMA could be bearish and could send the Aussie much lower. However, with all of the noise coming on Friday, I think you cannot read too much into the chart set up at the moment. If we turn around a break above the highs of the Thursday session on a daily close, then it is likely that we would see a bit of follow-through. The 0.75 level looks to be massive resistance, and therefore we need to continue to look at it through the prism of a gateway to much higher levels. Looking at this chart, I think the only thing you can count on is a lot of noise over the next 24 hours or so, as the economic numbers continue to come out this week.

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