AUD/USD Weekly Price Forecast – Australian Dollar Plodding Along
The Australian dollar has rallied a bit during the course of the trading week but has had a relatively tight range. It is also worth noting that several of the candlestick for the days of the week had long wicks to the upside, suggesting that we are running out of momentum. When you look at the weekly chart, you can see that we had bounced from the crucial 0.70 level and have been recovering sense. However, that has not changed much in the overall look, and as a result I think we are waiting for liquidity to come back in order to get a bigger move.
AUD/USD Video 03.01.22
It is worth noting that the Aussie dollar is highly sensitive to the Chinese economy, which of course has a lot of concern around it at the moment. Furthermore, you also need to pay attention to certain commodities, because the Aussie dollar is a bit of a proxy for “hard commodities.” Looking at this chart, it does look like we are trying to recover but as I said, we are running out of momentum. To the downside, if we do pull back a bit then I think the 0.70 level will be thought of as the “hard floor in the pair.” To the upside, if we were to rally from here then the 0.75 level will be a major ceiling to overcome. While we have had a nice little bit of a bounce, you can see that we are still very much in the same downtrend that we had been in for over a year. Keep in mind that Friday is nonfarm payroll, so that of course will have its say on the US dollar as well.
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