Australian Dollar Has a Strong Recovery

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied significantly during the trading session on Friday as we have seen a nice bounce against the US dollar. That being said, the market was oversold so it makes quite a bit of sense that we would see this happen. The 0.70 level underneath is massive support, where the market has bounced several times previously. The 0.70 level is an area that the consolidation area has been respecting for so long.

The 50 Day EMA is starting to break down below the 200 Day EMA, so there is the possibility of a “death cross.” On the other hand, we have been in a consolidation area for so long that I do not necessarily think that it will be an important signal. The 0.75 level above is a significant resistance barrier, so at the best, we would reach that area. Ultimately, this is a market that is going to continue to see these areas make a big deal about both support and resistance.

The market has been very noisy over the last several months, but when you zoom out, you can see just how little has been accomplished. In the short term, the market is far oversold, so this bounce does make a lot of sense based on what we had seen previously. Ultimately, I think this is a market that will eventually see a break from the 500 point range, but right now it does not look like we are ready to do so. In the short term, we probably get a bounce that will eventually be sold into at the first signs of exhaustion.

AUD/USD Price Forecast Video 02.05.22

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