AUD/USD Price Forecast – The Australian Dollar Rips to The Upside

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar rips higher during the trading session on Tuesday as the Monetary Policy Meeting Minutes were released. It appears that the RBA is focusing more on inflation these days than anything else, so it does suggest that perhaps there may be a few more interest rate hikes coming out of Australia down the road. If that’s going to be the case, then it makes quite a bit of sense that we would see the Australian dollar continue to show signs of strength. Furthermore, the Reserve is entering a “quiet period”, as they are getting close to another announcement.

With that being said, I think we may have a little further to go but I think the market is still going to remain in a downtrend for a while. The Australian dollar is not getting help from the commodity markets, so it does make a certain amount of sense that we would see the Aussie a little sluggish. We are oversold, so part of this may become more of a bear market rally, but I think it’s more likely than not going to be a scenario that we will find plenty of selling pressure near the 0.70 level.

Because of the scenario we find ourselves in, I am looking for signs of exhaustion to short. However, if we were to break above the 0.7050 level, I may have to start looking in the opposite direction. Only time will tell, but it certainly looks as if the trend is going to remain intact, despite the fact that this has been an impressive short-term rally. The 0.6750 level is a major area of price action in the past, so we will have to pay close attention.

AUD/USD Price Forecast Video for 20.07.22

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