Australian Dollar Continues to Bang Up Against a Ceiling

The Australian dollar has pulled back a bit during the trading session on Thursday to show hesitation near the 0.75 level, an area that will cause a lot of headline noise. The 0.75 level has been important multiple times, and now it is going to be interesting to see where we go next as the market is heavily influenced by commodities trading and risk appetite at the same time. Because of this, I think that it is probably going to continue to be very noisy, especially as we are so overextended with risk appetite right now. Quite frankly, when a market gets like this, it is very difficult to trade due to the fact that it is very bullish, but at the same time, you cannot necessarily jump in with both feet.

AUD/USD Technical Analysis Video for 25.03.22

If we do break above the 0.75 handle, the market then becomes more of a “buy-and-hold” type of situation. Ultimately, we will have to make a lot of decisions in this area so I think you are better off waiting to see whether or not we can break above there. If we do not, then it is likely that the 0.7380 level will be an area of support.

Keep in mind that if we get a sudden “risk-off environment” overtaking the market, then it is possible that we could see this pair fall off, but it is getting so much attention to the upside right now it is going to take something rather negative to make that happen.

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