The Australian dollar initially tried to rally during the Friday trading session, but bounced back in gains, reversed and fell towards the 50-day EMA. The 50-day EMA is of course an area that has been acting as a magnet for price lately, and I don’t see that changing anytime soon. Because of this, the market is likely to wobble back and forth in the area, as it has in the past couple of weeks. Quite frankly, we desperately need some kind of catalyst to get the Forex market moving, which we simply don’t have at the moment.
AUD / USD Video 06/14/21
Stagnation is probably the key word here, since we have not had a clear direction in one direction or another over the past couple of months. Because of this, I think the pair ended up in a five minute scalping situation, and that’s only if you have time to sit and watch the market. Because of this, the market is likely to continue to see erratic short-term behavior, so for a longer-term signal, it will essentially be considered “dead money” as there is no clear direction.
However, if we broke above the 0.80 level, it would be an extremely bullish sign, just as a break below the 0.75 level would be extremely bearish. At this point, we seem content to just sit in the middle of it all and spin the wheels. The trade conflict between China and Australia could also affect this pair as people wait to see how it develops.
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