AUD/USD Price Forecast – Australian Dollar Continues Consolidation
The Australian dollar rallied again during the course of the trading session on Wednesday as we have bounced from the 50 day EMA yet again. This is a market that continues to try to work off some of the recent consolidation and decide where it is going to go next. The 50 day EMA appears to be followed closely by technical traders and has been important multiple times over the last couple of weeks. With this being the case, I do believe that we will continue to go back and forth in the short term, perhaps waiting on the jobs number on Friday.
AUD/USD Video 06.05.21
To the downside, if we were to break down below the 50 day EMA there is plenty of support underneath there near the 0.76 handle, so I think we are essentially stuck in this range. This is especially true when you look at the 0.78 level and how resistive it has been. In other words, there is so much going on in this pair that is difficult to imagine that we are going to see an easy escape. That being said, eventually there will be an impulsive candlestick that you can fall, but we do not have it yet and therefore unless you are a short-term range bound trader, you probably do not have much to do in this pair. Furthermore, there are a lot of questions about China, as it stock markets have underperformed most of its peers, showing that there is perhaps some cracks in the ice when it comes to the Chinese economy. If that is going to continue to be the case, this pair is going to struggle to break out.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
