AUD/USD Weekly Price Forecast – Australian Dollar Pressuring Major Support

The Australian dollar has broken down during the course of the week to pierce the 0.75 handle, and even the 50 week EMA. However, we have bounced just a little bit on Friday as the jobs number came out hotter than anticipated. Because of this, the markets are all over the place in the short term, but longer-term this is most certainly a market that looks as if we are starting to struggle to continue going higher. Quite frankly, the recent weekly candlestick that was so long and negative suggests that the real momentum is to the downside.

AUD/USD Video 05.07.21

At this point, we would only need to see some type of negative catalyst to kick the chair out from underneath the Aussie dollar. However, if we break above the last couple of weeks, it is possible that we could go looking towards the top of that long negative candlestick. That being said, the market is likely to continue to see noise in that general vicinity which could be the “ceiling” of the market. Breaking above that would of course send this market much higher, and then perhaps go back towards the highs again. However, we would need to see some type of major “risk on event” in order to see this market go higher.

Nonetheless, I think at this point in time it is likely that we will continue to see a lot of concern out there when it comes to global markets, and at this point in time I think at the very least we are going to see a lot of choppiness more than anything else.

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