AUD/USD Price Forecast – The Australian Dollar Continues Its Overall Consolidation

The Australian dollar has rallied after initially gapping just a touch lower during the trading session on Monday, as we continue to await the newest reason to make a move. If and when that happens, we should see a clear path to the 0.70 level assuming that we continue to see overall “risk off” when it comes to this pair. Keep in mind that the Australian dollar has been relatively weak as of late, and as a result, I would not be surprised at all to see signs of exhaustion after we rally a bit. Quite frankly, this is a market that has to deal with an underlying economy that keeps shutting down and that of course does not help the situation.

AUD/USD Video 03.08.21

To the upside, there will be a significant amount of resistance near the 0.75 handle as it is a large, round, psychologically significant figure, and of course sits just below the 200 day EMA which will attract a lot of attention in and of itself. Beyond that, we also have the so-called “death cross” forming, and a lot of longer-term traders will be paying close attention to that. Breaking down below the recent lows would also offer more selling pressure, perhaps sending the market down to the 0.70 level.

That of course is a large, round, psychologically significant figure, which would attract a lot of attention in general. Ultimately, this is a market that I have no interest in buying, so it is simply a matter of fading signs of exhaustion or shorting just underneath the most recent lows. I have no interest in buying this pair whatsoever.

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