Australian Dollar Gives Up Early Gains

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar rallied a bit during the trading session on Tuesday but found enough resistance near the 0.74 level to turn things around. At this point, the market looks as if it is going to try to settle between the 50 Day EMA and the 200 Day EMA. This is normally where you squeeze and get a shot much higher, but at this point, it is a bit more likely than not that we are going to drop from here. If we break down below the 200 Day EMA, the market is likely to go much lower, perhaps reaching the 0.73 level, perhaps even the 0.72 handle.

The shape of the candlestick as I record this is an inverted hammer, and that suggests that we are going to go lower over the longer term. Rallies at this point would be potential shorting opportunities, and therefore you need to look at it as such. All things being equal, this is a market that has been very negative as of late, and it is likely that we continue to go lower. If we were to turn around, there are multiple areas you need to pay close attention to.

If we break above the top of the inverted hammer-shaped candlestick, then the market breaks above the 0.74 handle and then goes looking to the 0.7450 level, which is minor resistance, and then of course the 0.75 level after that, which is a major psychological level and an area where we have seen a lot of resistance previously. I do not think this is a market where you can overlook the boundaries that have been in place along, the 0.75 level being the ceiling, while the 0.70 level is the floor.

AUD/USD Price Forecast Video 20.04.22

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