Australian Dollar Hovering

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has gone back and forth during the trading session on Wednesday as we continue to see the Australian dollar give up some of the massive gains that it had enjoyed early during the Tuesday session. Keep in mind that a lot of the bullish pressure had been due to the Reserve Bank of Australia dropping the word “patience” from their recent statement. Because of this, the currency markets of course trying to front-run the central bank, as is often the case.

The risk appetite of course favors the Australian dollar, and of course, so do the commodity markets. The commodity markets look relatively healthy, and therefore it does help the Aussie, but at the end of the day, there are also concerns about global growth. In other words, the question is “how much longer will commodities run higher if demand is going to start falling?” At this point, we could be looking at even choppier trading.

A pullback at this point could send this market to the 0.75 handle, which is an area that has been resistance previously. The market pulling back to that area could find some buyers, but it does not really get ugly until we break down below the 0.7450 level. If we do break down below there, then I think all of this would have been a “false breakout” that could lead to a certain amount of trouble and a breakdown.

On the other hand, if the market can break above the top of the massive shooting star that was formed on Tuesday, that would obviously be a very bullish sign. Right now, it does not look like we have the momentum to do so.

AUD/USD Technical Analysis Video 07.04.22

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