AUD/USD Price Forecast – Australian Dollar Breaks Through Round Figure

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied during the trading session on Tuesday to break above the 0.70 level, showing signs of life yet again. That being said, the market is going to continue to be a bit noisy, but quite frankly it is difficult to imagine a scenario where the Aussie dollar simply takes off to the upside because quite frankly the US dollar is like a wrecking ball to almost everything at this point. Because of this, I believe that we have a situation where traders are going to come in and jump all over this market as it is most certainly negative. That being said, you also have to keep in mind on risk appetite in general.

If we break down below the 0.70 level, then it is likely that the market goes looking to the 0.6850 level, possibly even lower than that. A breakdown below the 0.68 level would be catastrophic for the Aussie, perhaps sending the market much lower. Rallies at this point in time continue to be looked at with suspicion, and therefore I think it is probably only a matter of time before they get faded. In fact, it is not until we break above the 0.72 level that I would take any rally seriously.

The market continues to be very noisy but still favors the greenback as there are so many concerns around the world currently. I think that continues to be the case, and therefore I still think that the US dollar is king, and will remain so for the foreseeable future. Commodity markets of course are heavily influenced by the Aussie as well, but I look at this as a bit of a relief rally more than anything else.

AUD/USD Price Forecast Video 18.05.22

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