AUD/USD Weekly Price Forecast – Australian Dollar Bounces From 200 Week EMA

The Australian dollar has fallen during most of the trading week to break down below the 200 week EMA, only to turn around and form a little bit of a supportive candlestick. Part of this will have been the fact that there had been multiple currencies that had done this against the US dollar. That being said, the Australian dollar is likely to continue to see trouble due to the fact that the Australians continue to lock down the economy, and of course the Chinese economy has slowed down.

AUD/USD Video 26.07.21

At this point, there are a lot of concerns as to whether or not the market will be able to support the Aussie, as there have been so many issues when it comes to concerns about growth and of course the locked down the economy in that part of the world. None of this is good for the Aussie, and it should be noted that we have been selling off quite some time. Breaking down below the bottom of the candlestick almost certainly opens up a possible move towards the 0.70 level underneath.

That is a large, round, psychologically significant figure that a lot of people will pay attention to. However, if we were to turn around and retake the 0.75 handle, the market is likely to go higher, as it could bring more bullish pressure into the market. At this juncture, I think you have to look at this market through the prism of an uptrend that may be changing. I would love to see some type of exhaustion candle to start shorting or break down below this hammer.

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This article was originally posted on FX Empire

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