Yahoo Finance AUD/USD Price Forecast – Australian Dollar Reaches Towards 50 Day EMA
The Australian dollar has rallied a bit during the trading session on Tuesday to reach towards the 50 day EMA. The 50 day EMA of course is an indicator that a lot of people will pay attention to, so therefore it makes quite a bit of sense that we would see a little bit of a reaction like we have over the last couple of days. That being said, the market continues to see a lot of noise in general, and if we can break above the highs of the last couple of sessions, then I think the market goes looking towards the 0.78 handle. After that, the market could then go looking towards the 0.80 level, which is an area that is crucial on longer-term charts. That begins a 100 point resistance barrier that will determine the longer-term trend. If we break the 0.81 handle, the Australian dollar will reach towards 0.88, possibly the 0.90 level.
AUD/USD Video 10.03.21
On the other hand, one thing to pay attention to is the fact that the February candlestick was a shooting star, which of course is a negative sign. If we were to break down below the 0.76 handle, then I think that the Australian dollar has further to correct at that point, we would be looking towards the 0.74 handle, maybe even the 0.71 level over the longer term. This would almost certainly be due to interest rates in the United States spiking again. At that point, we would probably see the US dollar act as a bit of a “wrecking ball” to a lot of assets, not just the Aussie dollar.
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This article was originally posted on FX Empire
