AUD/USD Price Forecast – Australian Dollar Testing Support

The Australian dollar has fallen a bit during the trading session on Wednesday to reach down towards the 0.76 handle. That level has turn things around to show signs of support, and quite frankly I think this is a very important candlestick to pay attention to. If we break down below the Wednesday candlestick, the Australian dollar will continue to fall rather significantly. This is because it would kick off the trade from a shooting star from the monthly candlestick for February. At that point, it is very likely that the market will go looking towards at least the 0.74 level, possibly even the 0.71 handle.

AUD/USD Video 25.03.21

On the other hand, if we turn around and rally, I think we will simply go back and forth in this general vicinity. We have clearly seen much more momentum to the downside than the up lately, and a lot of times when you get that type of price action, it is likely that you would see more of a downward bias. This does not necessarily mean that it is time to start shorting, just that there is a real possibility that the sellers will eventually push much lower. To the upside, if we were to see the market break above the 0.80 level, that becomes more of a longer-term buy-and-hold scenario, but I do not see that happening anytime soon. I think the bullish case at this point in time is probably more or less sideways, as opposed to taking off to the upside. The US dollar has been strengthening for a while, and as a result we are starting to see cracks in the ice here just as we have been several other currency pairs.

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