AUD/USD Price Forecast – Australian Dollar Softening

The Australian dollar has initially tried to rally during the day on Friday but has run into a bit of a buzz saw as far as resistance is concerned. That being said, I think that the market is more than likely going to continue to see this market as one that is well supported just below, at the 50 day EMA and of course the uptrend line just below there. However, it is worth noting that the Australian dollar formed a massive shooting star on the monthly chart last month, and we are getting dangerously close to kicking that off for a move lower.

AUD/USD Video 22.03.21

If that is going to be the case, this pair could drop down to the 0.70 level. The bond yields in America continue to be a major issue, as we have seen the 10 year climb as high as 1.75% recently. That being the case, I think we continue to see a lot of noise but if the yields in America were to break above the 1.75% level, things could get rather crazy. At that point, I think we would see a flush lower. Until then, I suspect that the Aussie may have some fight in it, and it will more than likely be one of the strongest (relatively speaking) currencies against the greenback.

The markets will have to maintain strength just below at the trendline and the 50 day EMA in order to keep the uptrend intact. If it does not, then we will see a big move. To the upside, I still see the 0.80 level as one that will be a major barrier.

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