Australian Dollar Continues to Pressure Support

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has fallen during the trading session on Thursday, reaching the 0.7450 level. This is an area that has been supported as of late, and the fact that we are hanging around in that general vicinity suggests that we are trying to break the market down, but it is not until we get a daily close below the 0.7450 level that I would think about shorting. At that point, I would anticipate that the Australian dollar goes looking to the 0.7350 level after that. The 50 Day EMA is in that general vicinity, so that could also come into the picture.

It is worth noting that the market has seen a massive shot higher, and of course the fact that the Reserve Bank of Australia dropped the word “patience” from the statement had everybody excited a couple of days ago. Since then, you can see that we have fallen apart, perhaps due to risk appetite deteriorating. Of course, the FOMC Meeting Minutes came out during the session on Wednesday, sounding much more hawkish than people had initially thought. This had the US dollar spiking higher, but now the “rubber meets the road” meaning that we are at a major area of inflection.

Looking at this chart, I do think that there is also the possibility that we are trying to build some type of consolidation area again, so I would anticipate a lot of choppy behavior and would be very cautious about my position sizing. Ultimately, the market will continue to pay close attention to the commodity markets as well.

AUD/USD Price Forecast Video 08.04.22

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