AUD/USD Price Forecast – The Australian Dollar Continues to See a Lot of Volatility

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has gone back and forth during the trading session on Monday as we continue to see a lot of volatility throughout the marketplace, not only in the Australian dollar but pretty much everything else as well. Ultimately, the 0.70 level above will continue to be a major resistance barrier, as it is a large, round, psychologically significant figure, and an area that will cause some headline noise as well.

Keep in mind that the US dollar is very strong in general, so it does make a certain amount of sense that the Aussie will suffer. Furthermore, the Australian dollar is highly tied to the commodity markets, which will be under a certain amount of pressure due to the question of global growth. If we are going to enter some type of recession globally, that will have a major impact on what we may see for demand. If that is going to be the case, the market is more likely than not going to continue to see a lot of noisy behavior, but even if we were to break above the 0.70 level, I believe that there are plenty of resistance areas above. In fact, it is not until we break above the 0.72 level that I would take a rally seriously.

It would obviously have to do with some type of major shift in either risk appetite or perhaps the Federal Reserve and its attitude. That does not look very likely to happen anytime soon, so it is more likely than not set this market up for a “fade the rallies” type of situation.

AUD/USD Price Forecast Video 17.05.22

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