AUD/USD Weekly Price Forecast – Australian Dollar Continues Choppy Behavior

The Australian dollar has gone back and forth during the course of the trading week, showing signs of confusion to say the least. The market certainly has no clarification as to which way it wants to go right now, and because of this I think we will continue to see a lot of short-term chop when it comes to the Aussie. That has been the way for some time, and therefore I think we need to recognize that long term trading in the Australian dollar is probably going to be difficult.

AUD/USD Video 04.10.21

This is not to say that the market is going to sit here forever, just that there is a lot of confusion as to where we are going next when it comes to the global outlook, as there are a lot of problems in China, and this of course has a certain amount of negativity when it comes to the Australian dollar as the Australian economy is so highly levered to mainland China. All things being equal, this is a market that I think it is worth watching, but from a longer-term standpoint you are probably better off simply waiting for another candlestick or two before you try to put money to work. If you are a range bound short-term trader, the Aussie might be exactly where you want to be.

Looking at the daily chart, I suspect that we probably have more of a push to the downside, but it is difficult to imagine that it is going to be worth buying or selling and holding on to a position for a longer-term until we get some type of momentum.

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