Australian Dollar Continues to See Resistance Above

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has initially tried to rally during the trading session on Monday but has pulled back in order to show signs of resistance yet again above the 0.75 handle. When you look at the longer-term chart, you can see that the area has been very difficult to overcome, and we are seen that yet again. I think that we are entering somewhat of a consolidation area in the short term and then will have a much bigger move.

Ultimately, I think this is a market that will continue to be very noisy, but with the interest rates in America spiking, there does come a point where the US dollar becomes too attractive to ignore. Ultimately, this is a market that I think then could break down significantly from here, but we also have the volatility of the commodity market that continues to push the Aussie higher.

At this point, it is essentially a race between the two, and the winner should soon be obvious. Currently, it looks as if we are trying to figure out whether or not we are going to consolidate or pull back from an area that has been a major resistance barrier more than once. Because of this, I think a certain amount of “market memory” comes into play, and therefore it is likely that we will have seen a lot of larger players put up their positions.

The next week or two could be crucial for the longer-term directionality of the Australian dollar. All things being equal, I think this is a market that will certainly be worth watching. If we break down below the hammer from two sessions previously, it would open up quite a bit of selling.

AUD/USD Technical Analysis Video 29.03.22

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