AUD/USD Price Forecast – The Australian Dollar Pulls Back From a Big Figure

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar rallied initially during trading on Thursday to reach above the 0.70 level. That being said, the market looks likely to continue seeing bullish pressure last for very long, as the Aussie is so highly tied to the commodity markets. The commodity markets continue to be a bit of a mess, as we are worried about interest rates rising, and of course a severe lack of global demand. The 50 Day EMA sits just below the current price, therefore I think that could cause a little bit of noise. Nonetheless, we have been in a downtrend for quite some time so it makes perfect sense that this market would continue to follow that overall attitude.

Even if we do break above the high of the Thursday session, there is still plenty of resistance all the way to the 0.7050 level, so we need to break above there in order to make the market show signs of positivity. At that juncture, the market could go to the 200 Day EMA, perhaps even as high as the 0.7250 level ultimately, this is a market that looks more comfortable going down than up, so I do like the idea of shorting once we get the opportunity.

We can use hard assets such as copper and iron as a reference, because they can give you a bit of a “heads up” as to where the currency can go, as well as economic figures coming out of the Chinese mainland as China is Australia’s biggest customer. Ultimately, this is a market that I think has had a bit of an overbought bounce that is about to be sold into.

AUD/USD Price Forecast Video for 29.07.22

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