Australian Dollar Continues to Threaten the 0.74

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has drifted a little bit lower during the trading session on Friday, in very thin trading. After all, it is Good Friday and therefore one can only read so much into the trading. That being said, we have been drifting lower for a while, and it does suggest that we will eventually drop below the 0.74 level. That being said, the market then opens up the possibility of the 200 Day EMA being tested.

Looking at this chart, if we do turn around and rally it is obvious that the 0.75 level would be a major resistance barrier. The 0.75 level is an area that has offered quite a bit of noise multiple times, and therefore it is worth watching as a major “ceiling.” The market has broken above there previously, but as you can see, we turned around quite rapidly. After all, this is a market that had to deal with a couple of major events in just a short amount of time.

The Reserve Bank of Australia initially dropped the word “patience” from its statement, and the market got excited about the prospects of the Aussie central bank tightening. This sent the Australian dollar higher, but the very next day we got the FOMC Meeting Minutes discussing a much more hawkish tone than people had thought. That sent the US dollar higher against not only the Australian dollar but almost everything else.

When you look at this chart, you can see that something has definitely changed in this area, and it is worth noting that the 0.75 level has offered a very difficult resistance barrier multiple times, and it now looks like we are simply adhering to that possibility again.

AUD/USD Price Forecast Video 18.04.22

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