AUD/USD Price Forecast – The Australian Dollar Continues to Consolidate

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied a bit during the trading session on Monday, as we continue to consolidate in the same general vicinity as we have over the last several sessions. Ultimately, this is a market that is bearish, so I look at every rally as a potential selling opportunity. That being said, I don’t necessarily think that you need to jump in with huge positions, and more likely than not you will have to trade with more of a range bound short-term type of attitude.

That being said, picking the bottom of this market will almost certainly lead to major losses, especially if you try to do so in size. On the upside, the market will almost certainly see a lot of resistance near the 0.67 level, which is an area that is important, as it had been supported multiple times in the past. Ultimately, the market should see a lot of noise in that area, and I think it would be an excellent opportunity to start shorting at the first signs of exhaustion. That doesn’t necessarily mean that we get there, but it would be a great area to start thinking about picking up dollars.

It’s difficult to imagine a situation where the Australian dollar suddenly takes off against the US dollar with anything that sustainable, mainly due to the fact that there are still a lot of concerns around the world, and taking a lot of risk in a commodity related currency does not seem to jive well with what’s going on in the real world. I think of this more as a “fade the rally” type of situation.

AUD/USD Price Forecast Video for 04.10.22

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