AUD/USD Weekly Price Forecast – Aussie Continues to Test 200 Week EMA

The Australian dollar initially fell during the course of the week but seems as if it is struggling a bit to continue going higher as we crashed into a previous uptrend line. At this point in time, the market certainly looks as if it is trying to figure out where to go next, and I think you are probably best served to simply sit on the sidelines until we break to a fresh, new high, or if we break down below the 0.70 level. This is not to say that you cannot trade the Australian dollar, just that we are in a major area of noise and therefore it is probably going to be somewhat difficult to trade on the weekly chart.

AUD/USD Video 12.10.20

The 200 day EMA is sitting just above current pricing, and therefore we could get a little bit of movement. That being said, it is difficult to imagine a scenario where you can trade a longer-term chart easily. Looking at this chart, I think we are essentially trying to figure out what is going on with stimulus, and once we can get past that then perhaps, we can get moving forward. The Australian dollar is highly levered to the Chinese economy, so that of course has a major influence on what happens next as well. With this, it certainly looks bullish over the last couple of weeks, but we still have not taken out the massive negative candlestick from three weeks ago and that is something worth paying attention to.

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