AUD/USD Weekly Price Forecast – Australian Dollar Pulls Back to Find SupportThe Australian dollar has pulled back during most of the week, but it is worth noting that as we close out the trading week, support has held.
The Australian dollar has fallen during most of the week, to reach down towards the 0.77 level, an area that has been supportive over the last month or so. The fact that we have turned around and bounce from there on Friday does suggest that perhaps the uptrend could continue. Nonetheless, this is going to be a very noisy trading pair as we are essentially going sideways as the continuing trade tensions between Australia and China are providing a little bit of a hesitation in this market, but we have been in an uptrend for some time.
AUD/USD Video 17.05.21
Another thing that is worth paying attention to is that the pair has been in an uptrend for some time, and of course you cannot take out the United States dollar from the equation. With this being the case, the softening greenback will have upward pressure being applied in this market. When you look at the chart, you could make an argument for a bullish flag, but when you look at the monthly chart you can see that we have seen a shooting star recently. In other words, we are most certainly at a major area of indecision, but if we can break above the 0.81 handle, that will unleash this market to go much higher to reach as high as 0.90 from a longer-term perspective.
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To the downside, I believe that the 0.76 level could be a massive support level, extending down to the 0.75 level. If we break down below there, then the market is likely to unwind quite drastically, perhaps down to the 0.70 level. All things been equal though, I still favor the upside as the US dollar continues to be on its back foot.
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