AUD/USD Price Forecast – Australian Dollar Running Out of Momentum?

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has gone back and forth during the trading session on Wednesday as we continue to see a lot of volatility in the Forex markets. At this point, it looks like the Australian dollar is a little overdone, as the market has gone straight out for several days in a row.

Whether or not this can keep up is very unlikely, especially considering that the Federal Reserve is going to remain tight while demand for commodities could start to wane yet again. After all, we are in the midst of a global slowdown, so it’s difficult to imagine that commodities will be in huge demand.

If we turn around and break down below the 0.67 level, I suspect that will be the signal that the Aussie is about to continue the overall downtrend. The target at that point would be the 50-Day EMA, which sits right around the crucial 0.65 handle. Alternatively, the market needs to at least work off some of the froth to go higher. Keep in mind that the 200-Day EMA sits right around the 0.6850 level and is dropping, so that could be a little bit of a ceiling as well.

Breaking above that is technically a trend change, so I think at that point we could see a huge move. That being said, the fundamentals don’t necessarily lineup for that, so I would be a bit suspicious but at the end of the day, prices will do what they do, and all you can do is trade the market that’s in front of you.

AUD/USD Price Forecast Video for 17.11.22

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