AUD/USD Weekly Price Forecast – Australian Dollar Continues to Drive Higher

The Australian dollar has rallied significantly during the course of the week, as we have seen the Federal Reserve step away from the idea of interest rate hikes, and at this point in time are possibly talking about tapering as little as possible. Quite frankly, the jobs number with such a joke that people are starting to question that immediately. The Non-Farm Payroll number came out 500,000 jobs less than anticipated on Friday, and of course we had seen the Australian GDP numbers come out hotter than anticipated, so it all kind of lines up quite nicely.

AUD/USD Video 06.09.21

It is not unless we wipe out this entire weekly candlestick that I would consider shorting this market, and even then, I would be cautious. The 0.75 level above will almost certainly be difficult to overcome, but if we do then it is likely that the Australian dollar will rally quite drastically. That is an area that has been important more than once in the past though, so you need to keep that in the back of your head.

With this, I believe that the market will continue to be very noisy, but a short-term pullback might be coming. The 0.74 level underneath could be supportive, and most certainly the 200 week EMA which is just below there could be. All things being equal, I think this is a market that shows just exactly what is going on in the trading world right now, complete lack of clarity and therefore you see massive swings in attitude and volatility and not just this pair but most financial markets in general.

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