AUD/USD Weekly Price Forecast – Australian Dollar Bounces From 200 Week EMA

The Australian dollar has fallen rather hard during the course of the trading week, to reach down towards the 200 day EMA. Because of this, the buyers come back into pick up the market, and as I record this, we are sitting right around the 0.74 level. The question now is whether or not we can break above the 0.75 handle, as it is a large, round, psychologically significant figure and will attract a lot of attention. If we do, then that would be a good sign of things to come, perhaps sending this market much higher.

AUD/USD Video 13.09.21

On the other hand, if we were to break down below the 200 week EMA and extensively the 0.73 level, I think this market probably pulls back rather significantly to start falling again in the general direction of the 0.71 handle. That is an area that we had bounced from previously, so therefore a lot of people will be paying close attention to it.

Whether or not that happens easily is a completely different question, but right now it looks as if we are on the precipice of trying to figure out whether or not global growth continues, or are we about to see something rather ugly? If global growth starts to slow down again, the Australian dollar will more than likely be a bit of a victim as money will go flowing towards the US dollar. In fact, this pair probably right now is focusing more on the US dollar than anything else, so keep that in mind as we go forward.

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