Yahoo Finance AUD/USD Price Forecast – Australian Dollar Pulls Back to 50 Day EMA
The Australian dollar has pulled back a bit during the trading session on Wednesday as we are starting to see a lot of “risk off” coming back into the market. That being said, the market is coming into a significant amount of support, so I do believe that it is only a matter of time before we bounce. If we do get that bounce, then the market will more than likely continue to go even higher, perhaps showing signs of continuation.
AUD/USD Video 20.05.21
If you look at the longer-term picture when it comes to the Aussie dollar, it is easy to make the argument that it is going to be messy, and that is something that I have suggested for a while. On a “risk off day”, it should not be a surprise at all that we have seen a pullback. Underneath, I believe that the market will try to find some type of support near the 0.75 level as well. If we were to break down below there, then it changes the entire outlook for the Australian dollar to one that is very negative. At that point, we could drop another 500 pips without much effort. Nonetheless, this is a market that is still very much in an uptrend despite the fact that we have seen such a selloff when it comes to risk appetite, not just the Aussie dollar. We have seen major “risk off” happening across multiple assets, ranging anywhere from stocks to crypto to currencies. Buying the dips should continue to work but you need to see signs of stabilization before you put any money to risk.
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This article was originally posted on FX Empire
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