AUD/USD Weekly Price Forecast – Australian Dollar Continues Flat LiningThe Australian dollar initially tried to rally during the week but as you can see has given up all of the gains to form a very neutral candlestick.
If you ever wondered where money went to die, the most recent answer would be the Australian dollar. It is not that it has not been a performer in the past, it is just that the last month or so has been a miserable exercise in range bound trading. Whether or not we can break out anytime soon is an open question, but I quite frankly do not expect to see that happen in the short run. The 0.75 level on the bottom is the floor, while the 0.7850 level is the ceiling.
AUD/USD Video 14.05.21
Looking at the chart, you can see how range bound this market has been, and I just do not see that changing in the short term. Ultimately, this is a market that I think has to make a bigger decision but is digesting a massive amount of gains over the last year or so. Furthermore, I think it is also difficult to get above the major resistance barrier, which extends between 0.80 and 0.81 above. It is not until we break above all of that that the market could go much higher, perhaps reaching towards the 0.90 level.
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If we were to break down to the downside, meaning that we get below the 0.75 handle, the market could drop down towards the 0.71 level, possibly even the 0.70 level. That being said, I do not see that the market is ready to make a move in either direction anytime soon, so I think we continue to go back and forth more than anything else as we head through the summer. In other words, longer-term opportunities are probably going to be scarce here.
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