AUD/USD Price Forecast – Australian Dollar Testing 50 day EMA

The Australian dollar has rallied a bit during the course of the trading session on Thursday to break above the 50 day EMA. The market is starting to pull back just a bit though, so it will be interesting to see if this 50 day EMA indicator can cause a certain amount of resistance. At this time year tends to be very thin to begin with, so I would not get overly excited for a big move. The pair is currently at the 0.7230 level, and I think the 0.72 level underneath should be supportive. If we break down below there, then I think we go looking towards the 0.71 level.

AUD/USD Video 24.12.21

To the upside, if we break above the top of the candlestick then we could go looking towards the 0.73 level, but this pair does not look like it wants to take off suddenly. I think it is just killing time at the moment like most other pairs. With that being Christmas Eve, it is going to be difficult to get a lot of people trading, so I think at this point in time you are probably better off just leaving it alone. Nonetheless, you should also think along the same lines next week, because these two weeks are some of the worst trading conditions all year.

While we have had a decent bounce from the 0.70 level, it is not as if it has wiped out all the negativity from the big selloff at 0.75 above. Because of this, I believe that eventually we will find a nice selling opportunity, but this is probably something that happens in January.

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