The Australian dollar has done very little during the trading session, but it has held the 50 day EMA as support. Ultimately, we are still very much in a range, but now that the Consumer Price Index has been at least in the United States, traders are starting to focus on the longer-term outlook again. If that is going to be the case, then it makes quite a bit of sense that this pair probably creeps to the upside, perhaps towards the 0.7850 level. That being said, I do not necessarily think that it is going to be easy for massive gains to be the outcome. However, it certainly looks as if there is quite a bit of buying pressure underneath. With that in mind, buying short-term dips may continue to work out quite well.
AUD/USD Video 11.06.21
To the downside, even if we do break down a little bit it is very likely that we will continue to see support near the 0.7650 level, possibly even the 0.76 handle. With that being the case, I think that if we do pull back there will be plenty of buyers looking for “value” down there, but I would not look for some type of major breakout in the short term. If we did break down below the 0.75 handle, that could in the entire uptrend, but I just do not see an argument for that right now as inflation seems to be taking hold, and that could continue to push the price of commodities higher, helping the Australian dollar in general.
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