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AUD/USD Price Forecast – Australian Dollar Struggling At Same Level

By:
Christopher Lewis
Published: Aug 30, 2021, 13:54 UTC

The Australian dollar has gone back and forth during the course of the trading session on Monday as it looks like the 0.73 level will continue to be a very difficult barrier to get beyond.

AUD/USD Price Forecast – Australian Dollar Struggling At Same Level

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The Australian dollar has gone back and forth during the course of the trading session on Monday as the 0.73 level is essentially an area that had previously been so supportive. If we fail here, that would simply be a continuation of the overall downtrend that we have been in. We formed the death cross quite some time ago, and then have since seen a massive turnaround as Jerome Powell mentioned that although there might be tapering later in the year, the reality is that an interest rate hike is nowhere near happening.

AUD/USD Video 31.08.21

That being said, the market will continue to see downward pressure under normal conditions, and if we were to break down below the candlestick on the Friday session, that could open up at fresh opportunity to start selling towards the 0.71 handle, followed by the 0.70 level. The 0.70 level of course is an area that would attract a lot of headline attention, as it is a large, round, psychologically significant figure. That area continues to be an important area on the longer-term chart from what I see, because if we were to break down below there, we could be changing the entire long-term trend as well.

On the other side of the equation, if we were to turn around a break above the 50 day EMA that I think we would go looking towards the 200 day EMA, and then the 0.75 handle. This would obviously be a very anti-US dollar move, and with the jobs number coming out on Friday that could be your catalyst. However, in the meantime it looks like we are certainly sitting still.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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