AUD/USD Price Forecast – Australian Dollar Trying to Break Out

The Australian dollar has rallied a bit during the course of the trading session on Thursday, to break above the 0.74 level momentarily. We have given back some of those gains and I would also point out that there are a lot of areas above that could cause some issues. It is because of this that I am waiting for an opportunity to short the Australian dollar higher levels, because quite frankly we are still very much in a downtrend over the last several months.

AUD/USD Video 30.07.21

The 0.75 level above is probably going to be a significant resistance barrier, as it is a large, round, psychologically significant figure and of course an area where the 200 day EMA is getting awfully close to being broken through by the 50 day EMA. This of course would be the so-called “death cross”, while I am not a huge proponent of it, I also recognize that a lot of longer-term traders may come into the picture. Ultimately, I think this is a simple sign of downward pressure that should continue, and I think that given enough time we will probably sell into signs of exhaustion.

If we break above the 0.75 handle, then it is likely that we could go much higher, but I will cross a bridge one we get there. Quite frankly, I do not see that happening very easily, and I think that it is only a matter of time before we get a little bit more clarity, but quite frankly the bounce will more than likely give us an opportunity sooner rather than later, but a little bit of patience may go a long way in the next couple of trading sessions.

For a look at all of today’s economic events, check out our economic calendar.