AUD/USD Weekly Price Forecast – Australian Dollar Continues to Struggle

The Australian dollar initially tried to rally during the course of the week but gave back the gains to form a bit of a shooting star. The shooting star follows a shooting star from the previous week, at the same place we have seen a few other ones. Furthermore, the February candlestick was a shooting star, just as the market candlestick was similar. That being said, the April candlestick is going to look a bit better, but it is difficult to ignore the fact that the 0.78 level has been such a massive barrier.

AUD/USD Video 03.05.21

If we break above there, the 0.80 level above is a massive resistance barrier that I believe extends to the 0.81 handle. If we can break above there somehow, then the market is going to become more of a “buy-and-hold” scenario. One thing is for certain, this is a market that certainly looks a bit suspicious and could very well pull back in the short term. If we break down below the 0.75 handle, then we probably get a much more substantial pullback.

At this point, I think the only thing holding up the Aussie is the fact that the US dollar is still soft, and if that suddenly changes overall, this is going to be the market to start shorting. We do not have that yet, but clearly, we do not have a reason to get long of this market either. I believe this is going to be the realm of short-term back-and-forth trading more than anything else as we have seen for a couple of months.

For a look at all of today’s economic events, check out our economic calendar.