AUD/USD Price Forecast – The Australian Dollar Continues to Struggle With Momentum

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has gone back and forth during the trading session on Thursday, as it looks like we are running out of momentum. By doing so, it looks like the 0.71 level is going to continue to cause quite a bit of resistance, followed by the 0.72 level. The 50 Day EMA sits just above the 0.7150 level and is dropping. Then should offer a certain amount of technical resistance, but even if we break above that level, I see so much in the way of selling pressure that it’s difficult to imagine that the Aussie is going to take off.

Keep in mind that the Australian dollar is considered to be a “risk asset”, so keep in mind that you need a lot of people willing to jump in and take a lot of risk in order to buy it. The US dollar is getting a bit of a bid at the moment, as traders are trying to buy bonds. Furthermore, the Federal Reserve is willing to be much more hawkish than people thought, and it seems like the rest of the world is trying to catch up with their attitude.

With the dismal economic numbers coming out of China, it does make quite a bit of sense that we would see the Aussie get sold into, as it is considered to be a proxy for the Chinese mainland. With that being said, I am still looking for signs of exhaustion that I can short because I do believe the overall trend is going to continue to be somewhat reliable and therefore I’m not going to try to be a hero here.

AUD/USD Price Forecast Video 27.05.22

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