AUD/USD Price Forecast – Australian Dollar Continues to Show Weakness
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar has fallen a bit during the trading session on Thursday as it looks like we continue to test the major support level just below, near the 0.6850 level. Given enough time, the market is more likely than not going to see volatility and noise, so because of this, I would be very cautious about trying to put on too big of a position. That being said, the market is almost certainly going to continue to see selling pressure on intermediate rallies.
The 0.70 level above should be significant resistance, but even if we break above there the market is going to have to deal with the 0.7065 level as well. Ultimately, this is a market that I think you should continue to fade rallies because quite frankly the market has shown very little in the way of longer-term bully sustainability. The 50 Day EMA is rapidly approaching the 0.7065 level as well, so it’s more likely than not going to be a scenario where both technical and fundamental traders will agree on the downside.
As long as the Federal Reserve continues to tighten monetary policy, and there are concerns about global growth, this is a pair that certainly will favor the downside over anything else. The longer-term picture is that we just formed a massive “H pattern”, so therefore technical traders will also look at this as a sign that we will eventually break down and go much lower. That being said, I have no interest in trying to fight the overall trend, and I look at rallies as an opportunity to start shorting again, picking up “cheap US dollars.”
AUD/USD Price Forecast Video 24.06.22
For a look at all of today’s economic events, check out our economic calendar.