AUD/USD Weekly Price Forecast – Australian Dollar Bounces for The Week

The Australian dollar has rallied a bit during the course of the trading week, but not quite enough to take out the previous week’s losses. At this point, the Aussie dollar is trying to figure out whether or not it wants to continue breaking down and test the significant support level in the form of 0.70, or if it is done selling off and we will continue to go to the upside? At this point, I think it is obvious that we will continue to be very nervous and skittish, and if that is going to be the case then one would have to assume that the volatility is the only thing we can count on, and whether or not the Federal Reserve decides to start tapering could be a completely different scenario.

AUD/USD Video 30.08.21

The Australian dollar has to deal with the 200 week EMA above, which currently sits at roughly 0.7320. Ultimately, if we can break above there then the market could go testing the 0.74 level, an area that I think will be very crucial. All things been equal, I think this is a market that will continue to see a lot of noisy behavior, but in the end the next couple of weeks will probably give us the full story. That being said, I anticipate a lot of noisy behavior heading into the fall, as momentum and more importantly volume will start to pick up. With this being the case, the market is likely to see a lot of noisy head fakes, so at this point in time I am somewhat neutral but suggest that perhaps there is a little bit more negativity out there that could step into price.

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