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AUD/USD Price Forecast – Australian Dollar Continues Recovery

By:
Christopher Lewis
Published: Dec 8, 2021, 14:43 UTC

The Australian dollar has rallied a bit during the course of the trading session again on Wednesday to reach towards the 0.7150 level, an area that is of course going to be important based upon recent resistance.

AUD/USD Price Forecast – Australian Dollar Continues Recovery

In this article:

The Australian dollar has rallied again during the trading session on Wednesday as we go looking towards the 0.7150 level. This is an area that has been resistance as of late, so it is worth noting that we may struggle in this area. With that being the case, I think the market is probably one that is going to try to see whether or not we can break above here, in a continue recovery from what has been in an extreme selloff. At this point, I think the best way to trade this market is to simply look for signs of trouble and then short it. Remember, we had been selling off rather relentlessly for almost a month, so three days of recovery is not a complete change.

AUD/USD Video 09.12.21

All of that being said, pay close attention to the US Dollar Index, because of the US dollar is going to continue to see a lot of interest, especially if we do continue to see a divergence between the United States and many of the other large economies around the world. The market of course will continue to see plenty of noisy behavior, but at this point I am not willing to buy into what seems to be a countertrend rally. The market continues to see a lot of volatility, but you have to keep in mind that the market was never going to go straight to the bottom and fall apart. The 0.70 level causing a bit of support could of course make quite a bit of sense due to the fact that it is such a large, round, psychologically significant figure.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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