AUD/USD Price Forecast – Australian Dollar Pulls Back From the 50-Day EMA

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar rallied a bit during the early hours on Tuesday but has pulled back from the 50-Day EMA, an indicator that a lot of people follow. The 0.70 level above also is an area where we have a lot of resistance and psychology coming into the market, so it makes a certain amount of sense that we struggle to get above there. If we do get above there, then the market is likely to go looking to the 200-Day EMA, which is near the 0.71 level.

The 0.6850 level underneath offered a certain amount of support, and if we were to break down below there then I think it’s likely that the market could go down to the 0.67 level. The 0.67 level is where we bounced from previously, and it should be a nice target for those looking to short-sell the market. If we break it down below there, then it’s likely that we go much lower, as it would open up the “trapdoor” underneath, opening up the possibility of a move down to the 0.65 handle. Ultimately, this is a market that I think continues to see a lot of volatility, and therefore I think it’s an opportunity to sell the Australian dollar every time we rally.

After all, the US dollar is the strongest currency in the world, and that should continue to be the case as the Australian dollar is a little farther out on the risk spectrum. Furthermore, the Australian dollar is highly levered to Asia, which is suffering at the moment. Given enough time, I think this is a market that does break down.

AUD/USD Price Forecast Video 31.08.22

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