AUD/USD Price Forecast – Australian Dollar Continues to See the Same Resistance

The Australian dollar has rallied significantly during the trading session on Friday as the jobs number disappointed in the United States, thereby driving down yields in America. Nonetheless, the market is likely to see a lot of noise just above yet again, especially at the crucial 0.78 handle. With that in mind, it will be interesting to see how this plays out, as the area has been like a brick wall for several weeks. The fact that we are pulling back from an initial reach towards that area probably should not be much of a surprise, because quite frankly this is a market that has been struggling to clear that area for quite some time. Eventually, we will have to make a decision as to whether or not the Aussie can get above the 0.78 handle, but I do not think it is coming now.

AUD/USD Video 10.05.21

To the downside I believe that the 50 day EMA will continue to be important support, as it has been over the last several weeks. All things been equal, I think we simply go back and forth in this general vicinity as we try to figure out what we are going to do next. It is not so much a situation where I am looking to put a lot of money to work here, but I am willing to observe what is going on and then eventually make the trade. In the short term, I think if you are a short timeframe type of scalper, this could be a good market for you, but otherwise it is going to be a struggle to make any real money.

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This article was originally posted on FX Empire

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