AUD/USD Weekly Price Forecast – Aussie Dollar Continues to Struggle

The Australian dollar has gone back and forth during the course of the trading week to show less than bullish behavior. This is interesting considering that the February candlestick was a shooting star, so we have to ask the question whether or not we are going to see a more significant pullback? That would make a bit of sense, due to the fact that we had been going straight up in the air for some time, but this is looking more and more like a market that could pull back a bit.

AUD/USD Video 08.03.21

That pullback could have the market looking towards the 0.74 level, maybe even the 0.71 level. While this would be a significant pullback, it does not necessarily mean that it would be a complete change in trend. Looking at this chart, the 0.80 level above is obvious resistance, and when you look at the longer-term chart, you can see that the 0.81 level is the top of that range. Quite frankly, if we were to break above that area, the Australian dollar suddenly becomes a “buy-and-hold” type of marketplace for a move all the way to the 0.88 handle, possibly even the 0.90 level after that.

If we were to break down below the 0.71 handle, the uptrend is over, and we would see the Australian dollar crash. I find that very difficult to imagine, but if we did see that type of selloff it would probably have something to do with interest rates in the United States or some type of shock when it comes to a lack of stimulus, something that seems to be very unlikely.

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