AUD/USD Price Forecast – Australian Dollar Reaches 0.70

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied to reach the 0.70 level during the trading session on Monday, and therefore it is worth noting that we did pull back from there just a bit. That being said, the market is likely to continue to see a lot of noise in this area, but even if we were to break above the 0.70 level, then we could see a lot of noise extending all the way to the 0.7050 level, and then the 0.7250 level.

In fact, it’s not until we break above the 0.7250 level that you could make an argument for the trend changing. If we do break above there, then it’s a completely different conversation, but right now the Federal Reserve looks hell-bent on raising, so it’s likely that we will see every rally eventually find selling pressure. This will be especially true if the risk appetite continues to dwindle around the world as the Australian dollar is so highly levered to commodities, and risk appetite in general.

The question now is whether or not the double bottom near the 0.6850 level is going to hold. If it does not, then that will bring quite a bit of downward pressure into this market for longer-term trades. I do anticipate that it will be more likely than not be choppy and sideways in this general vicinity, so I look at short-term rallies as an opportunity to pick up cheap US dollars. The recent action has been rather choppy, and I don’t think that changes anytime soon as there are so many concerns about the global economy right now with major central banks tightening into a global slowdown.

AUD/USD Price Forecast Video 21.06.22

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