AUD/USD Weekly Price Forecast – Australian Dollar Has Lackluster Week
The Australian dollar did rally during the bulk of the week, but it also gave back most of those gains, showing less than enthusiastic performance.
The Australian dollar initially rallied during the week, but as you can see has formed a lackluster candlestick by the time, we were all said and done. With that being the case, the market looks as if it is going to continue to see a lot of choppy behavior in this area. What I find particularly telling is that the March and February monthly candlesticks were both shooting stars, and although we formed a hammer during the weekly candlestick last week, we could not hang on to any type of momentum. This is not a good look for the Aussie, so at this point I have to think that we may be in danger of falling again.
AUD/USD Video 12.04.21
If we break down below the candlestick from last week, then I think this is a market that can start to move to the downside, possibly rather quickly. Even if we drop down to my projected 0.71 level, that would more than likely be just a correction and what has been a huge move over the last several months. Quite frankly, markets cannot go straight up in the air like this forever and of course the 0.80 level above is a major resistance barrier that extends to the 0.81 handle.
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If we were to break above there, it would be a huge change in the attitude of the market overall, because it would simply become a “buy-and-hold” situation. If that happens, it will be very easy to see how we could go another eight or nine handles. Until then, this is a market that looks like we may be seeing a correction sooner rather than later.
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