AUD/USD Price Forecast – Australian Dollar Rallies After Jobs Number

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied significantly during the trading session on Friday after the jobs number came out slightly hotter than anticipated. That being said, the market is very overdone in the short term, after this massive surge higher. The 50-Day EMA sits right around the 0.6520 level, which is basically where we had seen a lot of resistance previously. With that being said, I think it’s probably only a matter of time before the market then pulls back as the overall downtrend is still firmly in control of where this market is going. I think it’s probably only a matter of time before we see a return to the lows.

If we do break above the 0.6550 level, then we could open up the possibility of a move to the 0.67 handle, but that does not look very likely to me, so I think it’s probably only a matter of time before we see this market find plenty of sellers, but obviously it will be noisy as per usual. This is a scenario where you see opportunities on moves like this, because the first hint of exhaustion, traders will come in to pick up those “cheap US dollars.” It’s not until we break above the 0.67 level that I would take any rally seriously, and even then I might be a bit suspicious of them.

Furthermore, you need to keep in mind that the Australian dollar is highly levered to Asia and of course China itself, and then there is the commodity market influence also that comes into the picture. With this, I’m looking for opportunities to short this market now that we have extended to the upside.

AUD/USD Price Forecast Video for 07.11.22

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