AUD/USD Price Forecast – Australian Dollar Kicks Off Year on Back Foot

The Australian dollar has rolled over a bit during the trading session on Monday as it looks like the exhaustion right around the 20.7250 level continues to be a major issue. That being the case, I do believe that we probably have a little bit of a pullback ahead of us, but whether or not it is something major is a completely different question. The Australian dollar course is very sensitive to risk appetite and by extension China, so pay close attention to what is going on in Asia.

AUD/USD Video 04.01.22

Looking at this chart, you can see that the 50 day EMA is slicing right through all of the candlesticks of the last couple of weeks, and the fact that we chop through it is probably not a huge surprise simply because we are in a situation where we had been running out of momentum for a while, and every time we tried to rally it seems like we start to run out of any type of serious attempt. The 0.72 level underneath should be supportive, but if we breakdown through there then it is likely that we go looking towards the 0.71 handle.

On the other hand, if we turn around a break above the 0.73 level above, then it is possible that we could go looking towards the 200 day EMA above. That is an area that would of course be difficult to break above, but it might give us a nice target on a breakout to the upside. The market will more than likely end up being choppy more than anything else.

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