AUD/USD Price Forecast – Australian dollar recovering at 50 day EMA

The Australian dollar has found a bit of support at the 50 day EMA over the last couple of days, so it looks as if we are going to break above the top of the hammer from Friday and continue reaching towards the 200 day EMA. All things been equal, the market had pulled back to the 50% Fibonacci retracement level on the most recent move, and therefore I think we go looking towards the 0.75 handle. The 0.75 handle is a significant resistance barrier that extends to the 0.76 level. If they can break above the 0.76 level, traders will more than likely send this market looking towards the 0.80 level over the longer term.

AUD/USD Video 09.11.21

If we can break down below the bottom of the hammer for the trading session on Friday, then it could be very negative, but at that point in time I think we would see a massive US dollar move in multiple markets, not just this one. The Australian dollar was beaten down by a slightly dovish Reserve Bank of Australia, but at the end of the day the commodity market may be one of the reasons we see the Aussie ignore that. Furthermore, the US dollar seems to have weakness against multiple currencies at the same time, so given enough time I do think that we probably see a bit of buying pressure. In general, this is a market that is probably going to follow gold, which also looks as if it is trying to break out, so keep an eye on both of these markets as they look to be correlated again for the first time in a while.

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