Australian Dollar Pulling Back From Major Resistance

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has initially tried to rally during the trading session on Wednesday but then gave up momentum above the 0.75 level yet again. At this point, it looks as if the Aussie is ready to pull back, perhaps finally giving up some of its outsized gains against the US dollar. After all, the US dollar has been the favored currency for a while, with the exception of a few of the commodity currencies. That being said, the US dollar makes more sense, due to the interest rate differential and the fact that the US dollar is considered to be “safety.”

Ultimately, this market could go looking towards the 0.7375 level, an area that previously has been resistant. “Market memory” comes into play in that area, so be interesting to see how we react. Regardless, the markets have been a bit extended for a while, so at the very least I would anticipate that we need to pull back in order to build up momentum.

If we were to take out the highs from the last several days, we could go looking at the 0.76 level. Anything above the area opens up the possibility of a move that is more of the “buy-and-hold” variety. At that point, the market will more than likely go looking towards the 0.80 level over the longer term. The market continues to be very noisy, but keep in mind that the Australian dollar has the backing of commodities, which of course helps the entire situation. The market continues to be noisy to say the least, so keep your position size somewhat reasonable.

AUD/USD Video 30.03.22

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