AUD/USD Price Forecast – The Australian Dollar Pulls Back Slightly

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has pulled back just a bit during the trading session on Tuesday as we continue to see noise near the 0.72 level. Because of this, the market looks as if it is going to try to figure out where to go from a longer-term standpoint because the 0.72 level is so important. This is an area where I see a significant amount of resistance, so if we were to break above there, the market is likely to continue to break above the 200 Day EMA.

If we break down below the 50 Day EMA, it’s likely that the ERC will go look into the 0.71 level, possibly even down to the 0.70 level. Once we break through there, the RC will fall apart. After all, the market is likely to see the US dollar rally against almost everything, not just the Aussie. This is a situation where we will see a lot of noise due to not only the US dollar and interest rates but also the fact that the risk appetite of traders seems to be all over the place.

Keep in mind that the Australian dollar is considered to be a “risk-on currency”, and therefore we would need to see some type of risk appetite increase. Quite frankly, I think what we’ve seen as of late has been more of a relief rally than anything else. It’s possible that we will continue to see this happen, but it is more likely than not going to be sold into given enough time. The bounce has been rather impressive, but at the end of the day, the US dollar was over by more than anything else.

AUD/USD Price Forecast Video 01.06.22

For a look at all of today’s economic events, check out our economic calendar.