AUD/USD Price Forecast – Australian Dollar Trying To Form a Short-Term Bottom

The Australian dollar has dipped significantly during the course of the trading session on Tuesday to reach down towards the recent lows again, but then turned around to form a bit of a hammer rather quickly. At this point, it looks as if the Aussie is trying to recover, but whether or not it is a trend change would be a completely different question. In the short term, it is very likely that the market continues to see a lot of noisy behavior, and perhaps even a bit of a bounce. That being said, the market is likely to see the 0.73 level is a major resistance, as well as the 50 day EMA dipping lower.

AUD/USD Video 01.12.21

I do believe that eventually we will have a longer-term move, but keep in mind there is a lot going on this week, not the least of which will be Jerome Powell speaking in front of Congress, and of course the jobs number that comes out on Friday. Both of these will have a major influence on what happens with the greenback, which of course will have a major influence on what happens here. I do not have any interest in trying to short this market, at least not down here but will be looking for signs of exhaustion above that I can take advantage of. I do believe that given enough time this oversold condition has to correct itself, so it certainly looks as if we are trying to do so. If we can break above the 50 day EMA, I might change my overall attitude, but right now I look at this as an opportunity to short the Aussie on signs of exhaustion.

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