AUD/USD Price Forecast – Australian Dollar Choppy in Thin Liquidity

The Australian dollar has gone back and forth during the trading session on Monday as we continue to see a lot of choppy action which of course is to be expected as the liquidity is going to be very thin. Quite frankly, this is a market that is going to be heavily influenced by the lack of interest, so I think at this point in time we are more than likely going to chop back and forth between now and the New Year’s Day holiday. Ultimately, I think that it is only a matter of time before we make a bigger move, but in the meantime, I think it is very likely that we drop from here to go looking towards the 0.75 handle again. I see a significant amount of support between there and the 0.74 handle, so that would simply be a move back and forth and perhaps digesting some of the recent gains.

AUD/USD Video 29.12.20

It is difficult to imagine exactly why somebody would jump into the market with both feet, so at this point it is very likely that the thin volume is going to make a move back towards the big figure much easier. Once we get past New Year’s Day, and perhaps even the first employment figures, then we can get back to “normal trading.” In the meantime, I think a simple back-and-forth range bound attitude is probably the most likely outcome of what we see going forward. With even more interesting about the support underneath is that the 50 day EMA is starting to reach towards the 0.74 handle, so that only gives it more credence.

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