Australian Dollar, Aussie, AUD/USD Price Forecast:
- AUD/USD[1] has enjoyed a very strong bullish run since the March lows.
- Aussie price action began to relax in the latter-portion of July as a big zone of longer-term resistance began to come into play.
- At this point, a rising wedge formation[2] has formed and this will often be approached with the aim of bearish reversals. Is AUD[3]/USD[4] nearing a turn after a very strong four month uptrend?
Aussie Begins to Lag, AUD/USD Shows Tendencies of Turn
Like a phoenix rising from the ashes, AUD/USD put in a strong recovery following an early-year slump as price action jumped up to a fresh yearly high. While it took about two-and-a-half months for AUD/USD to crash down to a fresh 17-year low after the 2020 open, it took about another two-and-a-half months for the pair to recover the entirety of those losses, and then some.
Through it all, the .7000 big figure loomed large throughout; as this price helped to cap resistance as the New Year opened and came back into play in June after the pair had recovered. This resistance even held the advance for a little over a month, helping to hold the highs from mid-June to mid-July. But buyers eventually took out the psychological level on the way up to .7185-.7250, and that’s when the plot begins to thicken.
Since that resistance zone came into play in late-July, the Aussie advance has begun to show tendencies of a stall; allowing for the build of a rising wedge formation. Such formations will often be approached with the aim of bearish reversals, driven by the logic that the same trepidation shown by bulls at tests of resistance
