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AUD/USD Weekly Price Forecast – Aussie Dollar Continues Sideways

By:
Christopher Lewis
Published: Mar 12, 2021, 15:06 UTC

The Australian dollar has gone back and forth during the course of the week, showing signs of confusion.

AUD/USD

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The Australian dollar has gone back and forth during the course of the trading week, showing signs of confusion. What is interesting for me is that the February candlestick was a shooting star, and now we are trying to figure out what we are going next. It is interesting that we continue to go sideways, and it certainly looks as if the market is getting a bit exhausted again. After all, we had been looking at a potential pricing and of stimulus, but that clearly is done now.

AUD/USD Video 15.03.21

The next thing that we need to pay close attention to is whether or not the yields in America are going to rise or fall. After all, the market is likely to see a significant reaction to those yields, as they have been very strong at times. If the 10 year yields continue to rally the way they have, that could cause quite a bit of issues when it comes to the currency markets, strengthening the greenback. In the short term, I think that we are looking at a scenario where we could very well be very choppy over the next couple months while we try to figure out what to do next.

If we were to break above the 0.81 level, then it opens up a move to the 0.88 level, possibly even the 0.90 level. On the other hand, if we turn around a break down below the 0.76 level, then it is likely that the market could go down to the 0.71 level before it is all said and done.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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