AUD/USD Price Forecast – Australian Dollar Tests Support

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has initially plunged during trading on Friday, breaking below the 0.69 level. However, there is a “squishy area of support” in that general vicinity, so it does make a certain amount of sense that we have bounced from there. Whether or not we can hold remains an open question, but if we do break down below the 0.6850 level, I believe that opens up the possibility of a move all the way down to the 0.67 level, an area that has been important multiple times.

On the other side of the equation, if we can take out the 0.70 level, then it’s likely that we will go looking to reach the 200 Day EMA again, currently sitting near the 0.7140 level and dropping. Either way, this is going to be a very volatile and choppy market, but that can be said about all markets. Quite frankly, there’s nothing out there that’s overly compelling about trading right now, because this is one of the slowest times of the year. Furthermore, we have a lot of confusion and not a whole lot of conviction when it comes to directionality. I still believe in the US dollar at the moment, but I also recognize that we have sold off the other currency so much that a bounce might be somewhat inevitable.

The real signal might be if the EUR/USD pair can finally break down below parity on a daily close. If that happens, there will probably be a rush towards the US dollar yet again. Either way, I’d look at rallies in the AUD/USD pair as potential selling opportunities as things stand currently.

AUD/USD Price Forecast Video for 22.08.22

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