AUD/USD Price Forecast – The Australian Dollar Attempting to Recover on Friday
Australian Dollar vs US Dollar Technical Analysis
The Australian dollar has rallied just a bit during the trading session on Friday to recover some of the losses from the nasty Thursday session. That being said, there is still a lot of resistance above, with the 0.70 level offering significant resistance. The 0.70 level is a large, round, psychologically significant figure that people will be paying attention to, but I think the best thing you can do is “fade the rally.”
Keep in mind that the US dollar is strong for a reason, not the least of which will be higher interest rates in the United States. As the Federal Reserve continues to look very hawkish and likely to tighten going forward. Ultimately, this is a market that is a bit oversold, so it would make a certain amount of sense that we would show a bounce heading into selling pressure yet again. In fact, I do not have a scenario in which I am willing to buy the Aussie dollar, because quite frankly it is tied to commodities, which will be a difficult place to be as the global economy is starting to slow down.
If we break down below the lows, then I think we simply drop to the 0.68 level, which is an area that I have been talking about in the past. The market breaking down below there could open up a trapdoor effect and send the Aussie down to drastic lows. That being said, markets do not go in one direction forever, so it is likely that the bounce is necessary in order to offer value in the greenback.
AUD/USD Price Forecast Video 16.05.22
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