AUD/USD Weekly Price Forecast – Australian Dollar Continues Consolidation

The Australian dollar has gone back and forth during the course of the week as we continue to look at the market through the prism of consolidation and noise, as the Australian dollar is waiting to see what happens next with the overall global reopening trade and of course commodities in general. With this being the case, it is worth noting that the trade spat between China and Australia continues, so that does weigh upon the Aussie in general, but sooner or later this is going to be all about the reopening trade again, and as economies around the world do so, it is going to be a scenario where the hard assets that Australia has come into play.

AUD/USD Video 24.05.21

When you look at this chart, the question you have to ask now is whether or not this is distribution, or is it simply the market trying to build up momentum to break out above a major resistance barrier? I think sooner or later we will get an impulsive candlestick that we can follow, but right now it looks like if you are a longer-term trader, you are probably better off sitting on the sidelines as there is seemingly nothing but noise in this general vicinity.

If we can break above the 0.81 handle, then it is possible that the market goes looking towards much higher levels, as it would be a major breakout on the longer-term charts. That could possibly open up a move all the way to the 0.90 level, but obviously that would be a very long term trend type of call. If we turn around a break down below the 0.75 handle, then it opens up the possibility of 0.70 underneath.

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