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

The Australian dollar has initially tried to rally during the course of the week but has also given up a lot of the gains. At this point, the Australian dollar clearly is struggling at this area and I think what we are probably going to see is a continuation of the choppy behavior. The 0.78 level has been a bit of a “line of death” for this market, and it looks like that is going to continue to be the case. With that in mind I believe that the Aussie dollar will struggle to prove itself anytime soon, and the fact that we continue to fire off shooting stars at the same level gives me pause.

AUD/USD Video 26.04.21

Beyond that, the February and the March candlesticks were both shooting stars, which is a very rare signal indeed. This is why if we were to break above the 0.80 level, that would be extraordinarily bullish and I would not only be a buyer of the Australian dollar, but I would be hanging on for the next year or two. The 0.80 region is one that has been important going back decades, and market memory certainly would come into play then. Because of this, I think what we are looking at is the likelihood of a lot of volatility, but quite frankly the underwhelming action of the Australian dollar should not be overlooked. If we suddenly have a significant amount of concern about growth, the Aussie dollar could get a pullback. Speaking of which, the pullback down to 0.70 is a theory that I have but nonetheless it would be a simple pullback in what has been a massive uptrend.

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