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AUD/USD Price Forecast – Australian Dollar Gets a Bit of a Boost on Thursday

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The Australian dollar has initially pulled back during the course of the trading session on Thursday only to turn around and rally significantly. Ultimately, the market looks as if it is simply going to get a bit of a bounce that we can sell into, with a particular interest at the 0.74 level, and then again at the 0.75 handle. At this point, I am simply waiting for some type of exhaustive candlestick in order to get short again, as yields in America have been dropping in a sign that the world is buying bonds to reach towards safety.

AUD/USD Video 23.07.21

The Australian dollar of course had been sold off rather drastically, so a bit of recovery certainly makes sense. Furthermore, the market is more likely than not to go looking towards a little bit of stability at the previous selloff area, so I think now that we have gotten a little overextended, we can look for “value” in the US dollar as the downtrend should in theory continue. Ultimately, this is a market that should continue to go lower, perhaps reaching towards the 0.70 level. The “death cross” is about to happen as well, so it makes quite a bit of sense that longer-term sellers may try to get involved. Given enough time, I do think that we break down but whether or not we can break below the 0.70 level is a completely different question.

As far as buying is concerned, we need to clear the 0.75 level on a daily close at the very least for me to entertain the idea of buying the Aussie at the moment. After all, Australia continues to lock itself down.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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