Australian Dollar Continues to Look Threatened

Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar initially rallied during the course of the trading week but then turned around to show signs of hesitation at the crucial 0.75 level. We have broken below the bottom of the shooting star from the previous week, suggesting that we could drop rather hard. The market has seen the 0.75 level as an area of major resistance, and it continues to be the same song and dance at this point.

At the bottom of the overall consolidation area is found at the 0.70 level, and that could be the target given enough time. This of course has a lot to do with the strengthening of the US dollar in general and a potential problem in the commodity markets. After all, the Australian dollar is heavily influenced by commodities, and therefore it is difficult to imagine a situation where we have a lot of strength in the Australian dollar.

At this point, the 50 Week EMA could be targeted, right along with the 200 Week EMA which is sitting at roughly the same level. That would be near the 0.7350 level. Breaking through that area, then the market could go lower at that point. In fact, I do not see a buying opportunity until we break above the top of the shooting star from the previous week. That would obviously take a major turnaround in the overall attitude and momentum to happen, so therefore I am not holding my breath for that to happen anytime soon. With this, it looks like we continue the overall back and forth.

AUD/USD Price Forecast Video 18.04.22

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