AUDUSD Forecast – Australian Dollar Continues to Pull Back

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has fallen a bit during the trading session on Monday, as we have seen a significant amount of overbought pressure, with the 0.67 level being a bit of a barrier. At this point, we are trying to determine whether or not we are going to see a bigger move, or if we are going to see a return to gravity as the market had been in a downtrend for ages. Furthermore, there are a lot of things out there that you could be looking at as potential market moving issues.

The 50-Day EMA sits right around the 0.6550 level, and that could be the target of short-sellers. Ultimately, if we were to break down below there a lot of questions would be asked of the 0.65 level. That’s an area that previously had been significant resistance, so if we were to see the market test that area, one would assume that there should be significant support there. Breaking down below that level could open up the possibility of a return to the 0.62 level.

The 200-Day EMA sits just above the 0.68 level, an area that I think you need to be watching if we do break to the upside. However, keep in mind that the Australian dollar is highly leveraged to China, and of course all things Asian. Beyond that, a lot of this will come down to global risk appetite and of course the idea of commodity demand being strong or weak with a potential recession.

AUDUSD Forecast Video for 22.11.22

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