AUD/USD Price Forecast – The Australian Dollar Has a Relief Rally

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has struggled quite drastically over the last week or so, so the fact that we bounced from the bottom should not be a huge surprise, and most traders who have been around for more than about five minutes understand that the market cannot go in one direction forever. A rally from here should not be surprising, nor should it be chased.

As I write this article, the Federal Reserve is in the midst of its two-day meeting, and now Wall Street is expecting a 0.75% interest rate hike. That being said, the underlying and fundamental issues in the economy are still there, so one would have to assume that sooner or later the overall attitude continues. Yes, we may get a short-term pop to the upside, but we have a long way to go before we change the overall attitude and continue higher.

I am aware of the fact that the next day or two may be bullish but waiting for signs of exhaustion that I can take advantage of. After all, the US dollar is still by far the strongest currency out there, and I just don’t see that changing based on interest rate hikes. There is a long way to go before the actual economy changes.

Furthermore, if the global economy is going to slow down, it will put a beating on certain commodities, and the Australian dollar of course is highly levered to many of those commodities. At this point, we have central banks around the world tightening monetary policy, and a global slowdown is almost a certainty at this point.

AUD/USD Price Forecast Video 16.06.22

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