AUD/USD Price Forecast – Australian Dollar Has a Strong Recovery

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied significantly during the trading session on Thursday, but at this point in time, it’s likely a situation where we are going to see plenty of exhaustion given enough time. The 0.70 level above should be a significant resistance barrier that will be difficult to get above. If we were to get above that area, it would be a massive move, but right now I see far too much in the way of resistance to think we are simply going to slice through all of this noise.

Furthermore, you have to worry about the Federal Reserve tightening monetary policy, but at this point, I think we have a situation where people are simply buying into an oversold bounce. With the job number coming out on Friday, I would anticipate that the market will probably be very noisy. Ultimately, traders are now back in the thought process that perhaps the Federal Reserve will not tighten as much, but every time this happens, the Fed comes out and smacks people around.

Demand destruction for commodities will continue to work against the Aussie dollar going forward, and therefore you need to be very cautious about trying to buy this market. However, I will not hesitate to short this market at the first signs of exhaustion. Ultimately, I think this is a market that will continue to suffer at the hands of the US dollar more than anything else, and of course, the interest rates in America rising as we have seen multiple times. The candlestick is rather impressive, but when looked at through the prism of the overall downtrend, it is but a blip on the radar.

AUD/USD Price Forecast Video 08.07.22

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