AUD/USD Price Forecast – Australian Dollar Pulls Back

Australian Dollar vs US Dollar Technical Analysis

With a severe lack of major announcements this week, should not be a huge surprise that the currency markets are taking a bit of a breather. This of course includes the Australian dollar, which of late has been rather choppy. I think at this point it does make a certain amount of sense that we would see the market kill time, waiting for the next macroeconomic event. All things being equal, the Australian dollar remains in a bearish market, so I do think that is probably how you have to look at this.

Rallies at this point continue to be selling opportunities, and I do think that it is probably only a matter of time before we see some type of flesh lower. The 0.62 level has been important more than once, so I think it could offer a significant amount of support if we get there. That being said, if and when we finally break through there, it’s likely that the Australian dollar drops down to the 0.60 level, which is obviously a large, round, psychologically significant figure.

On bounces, I do believe that there are plenty of reasons to believe that there should be some trouble ahead, especially near the 0.64 level and then again at the 0.65 level. After that, you have the 50-Day EMA coming into the picture, and then eventually the 0.67 level. It is not until we break the role of that that I would be convinced on any type of rally. Furthermore, keep in mind that the RBA looks as if it is slowing down its rate hikes, while the Federal Reserve still is acting like a wrecking ball to risk assets.

AUD/USD Price Forecast Video for 20.10.22

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