AUD/USD Price Forecast – Australian Dollar Stabilizing

The Australian dollar has gone back and forth during the course of the trading session on Wednesday as we are hanging about the 50 day EMA, showing signs of noisy behavior. The market still has a significant amount of support near the 0.73 level, and I am still looking at that as an area that if we break below it, the Australian dollar will fall quite significantly. In general, at that point I would anticipate a resumption of the overall selling pressure that we had seen, but it is also worth noting that we recently went parabolic and simply shot through an area that should have been difficult.

AUD/USD Video 09.09.21

On the other side of the equation, if we break above the top of the candlestick for the trading session on Wednesday, I anticipate that the market will probably go looking towards the 200 day EMA again. Clearing that will bring a lot of technical traders into the upside, as we should continue to go higher, testing the 0.75 level. That of course is an area that would look important, as it is a large, round, psychologically significant figure. Breaking out above that then opens up the possibility of a move towards the highs again.

I do believe that the market is ready to make a bigger move, so the question now is whether or not this was a breakout followed by a pullback to find support, or if it was a fake out “blow off top?” All things being equal, this is a market that I the end of the week should give us a nice signal for a bigger move.

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