Australian Dollar Continues to Bounce

Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar has fallen during the course of the week to reach near the 0.70 level before turning around. By doing so, the market looks as if it is trying to save itself, but I think we have a lot of work ahead of ourselves to get anything bullish going. All things being equal, the market looks as if it is respecting the 0.70 level underneath as support, while the 0.75 level above is a significant amount of resistance. We continue to see a lot of noisy behavior, and I do not see that changing anytime soon. Because of this, the market is more likely than not going to be in a situation where we just go back and forth.

Looking at this chart, it is likely that we will continue to have to focus on daily charts and not weekly chart because we have so much in the way of noise. The market breaking down below the 0.70 level would open up a massive drop from there, and as a result, I would get aggressively short at that point. That being said, as long as we stay within the overall range, then it is likely that we go back and forth and show signs of choppy behavior, then I do not have any interest in trying to go “all in” when it comes to this market. With that, I am looking to shorter time frames, but I am very cognizant of these two major areas on the weekly chart. Once we break out, it probably opens up a couple of hundred pips in one direction or the other.

AUD/USD Price Forecast Video 02.05.22

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