AUD/USD Price Forecast – The Australian Dollar Continues to Bounce From an Extreme Oversold Condition

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar dipped initially during the trading session on Friday, breaking down below the 0.67 level yet again. That being said, we have turned around to show signs of life, and it looks as if we are threatening the 0.68 level. If we can break above that level, then it’s possible that we could get a bit of recovery bounce. I do think that it is probably going to matter for more than a short-term bounce, that bounce should offer a nice opportunity for us to start shorting again. After all, the US dollar is by far the strongest currency in the world, and I doubt that’s going to change anytime soon. Because of this, the market is more likely than not going to be a “fade the rally” type of situation.

All things being equal, I think this is a market that has to worry about the 0.6850 level, perhaps even the 50 Day EMA that has broken below the 0.70 level. In general, there is more likely than not going to be a scenario where the best play will be waiting for signs of exhaustion that you can take advantage of. After all, it’s all about picking up “cheap US dollars” at this point. The market is not a strong market by any stretch of the imagination, but we are so oversold that it does make quite a bit of sense that we would see a turnaround.

Until the Federal Reserve changes its tune, and of course, people stop worrying about the recession, I just don’t see a scenario where the Australian dollar suddenly overwhelms the US dollar for a bigger move.

AUD/USD Price Forecast Video for 18.07.22

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