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

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar initially rallied during the trading session on Tuesday but gave back gains as we approached the 0.70 level. This area has been difficult to overcome for the last couple of days, and of course has a lot of psychology attached to it. Furthermore, you need to keep in mind that the Australian dollar is highly levered to the commodity markets, so therefore we need to pay attention to copper, which is breaking down.

If we were to break above the 0.70 level, it’s not until we break the 0.71 level that you can take a rally seriously at all, and even then I think it would be a short-term deal. The 200 Day EMA sits at the 0.7250 area, and I think will offer a significant barrier. Rallies at this point continue to be selling opportunities, as the US dollar is the biggest game in town. If we can break down below the previous double bottom near the 0.6850 level, this market could really start to take off to the downside, perhaps heading down to the 0.68 level, and then breaking below there could open up the flood of selling.

Keep in mind that a lot of this is going to come down to risk appetite, which of course is a very fickle thing at this point. Rallies continue to get sold into, so that’s what I’ve been doing, “fading rallies” every time I see the first hint of exhaustion in a market that quite frankly can’t seem to get off of its back. Furthermore, China seems to be slumping, and that won’t help Australia at all.

AUD/USD Price Forecast Video 22.06.22

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