The Australian dollar has fallen a bit during the trading session but continues to see support near the 50 day EMA. As a result, it looks as if we are going to continue the overall sideways action that we have seen over the last couple of days, and that we are not quite ready to break down. In that scenario, it is very likely that we will continue to see noisy behavior that we can get involved in. Because of this, I believe that the market is probably still going to try to build up enough momentum to take out the 0.78 handle, but we are clearly nowhere near being able to do that right now.
AUD/USD Video 05.05.21
The 0.76 level could be a target if we do in fact break down below the 50 day EMA on a daily close, but at this point in time I have to assume that we will see more of the same as we head towards the jobs number on Friday. With that being the case, we may have a couple more days of sideways nowhere action, as we try to figure out where to go next. That being said, if we were to turn around a break above the 0.78 handle, then I think the market is likely to go much higher, perhaps reaching towards the 0.80 level. With the commodities markets going wild, one would think that we would have already done that. We have not though, so that does make me a bit suspicious of the Aussie in general.
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