AUD/USD Price Forecast – Australian Dollar Returns Into Consolidation

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has fallen during Wednesday’s training, showing signs of hesitancy again. Ultimately, this is a market that has been consolidating over the last couple of sessions, after a plunge a couple of weeks ago. This makes a certain amount of sense that we would be hanging around here, because we had broken through a major support level in the form of the 0.67 level, so we will have to think our way through the next potential move.

Rallies at this point in time will probably face a bit of resistance near the 0.65 level, and most certainly at the 0.67 level. The 0.67 level was the major barrier that a lot of people had been paying attention to in our longer-term charts recently, but now that we are below it, one would think that lower pricing should become a little easier to obtain. I don’t necessarily have a target at this point, but I do recognize that the US dollar will continue to get bid, not only due to the tightening monetary policy coming out of the Federal Reserve but as a simple safety play. Beyond that, a couple of days ago the Reserve Bank of Australia decided to raise rates only 25 basis points, as opposed to the widely anticipated 50 basis points.

The Federal Reserve has already tried to tell the market that they are not changing their policy, so we will see whether or not they believe them. At this point though, it looks as if Australia may slow down a bit when it comes to tightening, and therefore you see a bit of a difference.

AUD/USD Price Forecast Video for 06.10.22

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