AUD/USD Price Forecast – The Australian Dollar Gives Up Early Gains

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar initially rally during the trading session on Tuesday but gave back early gains as the 200 Day EMA came into the picture, perhaps offering a little bit of psychological resistance. At this point, the market looks as if it is vulnerable to the downside, but we would need to break down below the 0.7150 level on a daily close to make that a bit more apparent. At that point, I would anticipate that the market is looking toward the 0.70 level underneath, which has a lot of psychology and historical importance attached to it.

The alternative scenario is that we turn around a break above the 200 Day EMA decisively and continue the recovery. That could send this market all the way to the 0.7450 level above, but at this point, I think it is probably more or less going to be choppy in the meantime. I can probably make that comment about most Forex pairs, and the Australian dollar has a lot of crosscurrents that make it even more susceptible to this type of Brownian nonsensical motion.

The commodity markets of course are very strong, and China is reopening. However, the US dollar is very strong as well, and we have an interest rate decision coming out of Australia during this week so that obviously throws a lot of noise into the pile as well. I will pay attention to the levels that I mentioned previously, and trade accordingly. At this point, all fundamentals and news should probably be ignored because they are just muddying up the waters.

AUD/USD Price Forecast Video 08.06.22

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