AUD/USD Price Forecast – Australian Dollar Hanging Tough

The Australian dollar has rallied slightly during the trading session on Thursday but gave back the gains to essentially do nothing. However, it is crawling along the 50 day EMA and that is something that a lot of traders will take notice of as potential support. That being the case, I think that the uptrend is still very much intact, but we are simply going to be killing a bit of time to work off some of the excess froth in the uptrend.

AUD/USD Video 05.02.21

To the upside, the 0.78 level has been resistance more than once and I think that is the target in the short term. Whether or not we can break above there might be a completely different scenario, but I do think that the market will eventually try to do so. The US dollar has been strengthening a bit against some currencies, so we are seen a little bit of hesitation when it comes to shorting the greenback. The Australian dollar is mainly driven by the idea of stimulus around the world right now, as it is a commodity currency and of course highly influenced by hard assets such as copper or gold.

China and its economy of course is represented by Australia as well, as the Chinese Yuan is not freely traded. If Chinese numbers pick up a bit, that could also help Australia, but right now it should be noted that the most recent economic numbers out of China have actually slowed just a bit, which could be waiting on this pair as well.

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