AUD/USD Price Forecast – Australian Dollar Pressuring Support Level
The Australian dollar has gone back and forth during the course of the trading session on Wednesday, as we continue to threaten the 0.73 level. That is an area that has been significant support for quite some time, and as you can see, we have seen a little bit of a push to the upside after initially dipping. The question now is whether or not we can continue to go lower? At this point, it certainly looks as if we can, and therefore I am waiting for a nice opportunity to get short of this market, which I defined as breaking the 0.73 level significantly.
AUD/USD Video 16.09.21
The Australian dollar is highly levered to the Chinese economy, and it should be noted that there were a lot of disappointing data coming out of China overnight. This could have a bit of a negative effect on this market, which would be expected in that scenario. Furthermore, we need to pay close attention to what is going on with the US dollar, and whether or not people are buying into it.
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On a breakdown below that 0.73 level, I would fully anticipate a move towards the 0.71 level, an area that has been important previously. On the other hand, if we were to turn around a break above the 50 day EMA, we could go looking towards the two hundred day EMA next, which currently sits near the 0.7450 level. That is an area that of course will attract a lot of attention, and it begins significant resistance up to the 0.75 handle as it is a large, round, psychologically significant figure. Breaking above that would obviously be very bullish sign, but I do not necessarily think that happens in the short term. All things been equal, this is a market that looks as if it has some fundamental questions to ask of itself.
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