AUD/USD Price Forecast – Australian Dollar Stalls

The Australian dollar has gone back and forth during the trading session on Wednesday to show a little bit of hesitation. That being said, the market still looks as if it is trying to build up a bit of a base in order to go higher. A short-term pullback would make quite a bit of sense, due to the fact that we have had three strong performing days in a row. The 50 day EMA underneath continues offer support from what I can see, and therefore it is not until we break down below there that I would look at this as anything more than just the short-term pullback.

AUD/USD Video 11.02.21

To the upside, the 0.78 level offers significant resistance, so if we were to break above there, it is likely that the market will then go looking towards the 0.80 level after that. After all, the 0.80 level is a major level from both a psychological standpoint and a structural one based upon the monthly chart. Because of this, I think that a lot of traders would be all over this pair if we break above there as it could send the Australian dollar looking towards parity over the next several years.

One thing I think you can continue to see is choppiness more than anything else. This is a very noisy market due to the fact that it is moving back and forth with anticipation of the reflation trade. That of course will continue to be a major driver due to the fact that there are arguments about the size of stimulus, and more importantly whether or not it will actually make a difference.

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