Australian Dollar Continues Consolidating Near the Big Figure

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied a bit during the trading session on Wednesday to show signs of strength again, but at the end of the day we are still very much in consolidation and now we need to determine where we go next. We have a series of hammers and shooting stars that shows just how much confusion it has right around the 0.75 level, which will act as a magnet for the price anyway. Ultimately, this is a market that will be very noisy, to say the least, so I do not expect anything other than choppiness until we get an impulsive candlestick.

Looking at this chart, if we were to break above the 0.76 level it would be a very bullish sign, to say the least. At that point, the Aussie dollar would become more of a “buy-and-hold” type of situation. At that point, I would anticipate that the market would go looking towards the 0.78 handle. On the downside, if we were to break down below the hammer from the session on Tuesday, then I think it opens up quite a bit of selling, perhaps for a run down towards the 0.7375 handle.

A lot of this will come down to commodities and risk sentiment around the world, because if it starts to sour, it makes quite a bit of sense that we would see the US dollar strengthen. Ultimately, this is a market that has a lot of work to do to determine where it goes next, but eventually we will get a certain amount of certainty and impulsivity.

AUD/USD Price Forecast Video 31.03.22

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