AUD/USD Price Forecast – Australian Dollar Hugging 200 Day EMA
After the Reserve Bank of Australia suggest that it was a bit more dovish than people thought, the Aussie dollar got absently hammered. At this point, we are sitting just above the 0.74 handle, which is a crucial support level based upon the action over the last several months. That being the case, the 50 day EMA is also worth paying attention to as it sits just below it. All things been equal, if we turn around and break above the 0.75 level it would be a very strong sign and should send this market much higher.
AUD/USD Video 04.11.21
That being said, the Australian dollar is a little bit of an outlier right now, due to the fact that the RBA of course suggests that perhaps things are much more dovish than thought. That being said, Australia also continues to be a bit of a laggard due to the fact that it shot itself in the foot locking everybody down, so it will be interesting to see what the direction ends up being.
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If the US dollar strengthens overall, that would be very negative for this pair, and this would be the first place I would start buying greenbacks. On the other hand, the US dollar gets hammered, and of course the Federal Reserve meeting during the day could have some effect on that, then I think this is a market that could rip right back to the upside as commodity market certainly favor the idea of a stronger Aussie dollar.
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