Australian Dollar Pulls Back to the 50 Day EMA

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has fallen during the trading session on Monday to test the 50 Day EMA. By doing so, the market looks as if it is trying to stabilize in that general vicinity, and perhaps cause a little bit of a bounce. That being said, if the market was to bounce from here, it still faces a major uphill battle to break out. The 0.75 level is a large, round, psychologically significant figure that has been important multiple times, so therefore you need to pay close attention to how the market behaves once we get there. If we were to break out above that region, then it is very possible that the market could go looking toward 0.76 or so.

On the other hand, if we were to break down below the 200 Day EMA, that would be a major turn of events, perhaps sending the Australian dollar much lower. That being said, we have fallen enough that a bounce would make quite a bit of sense. If we were to break it down, it will almost certainly be in a major “risk-off scenario”, as the Australian dollar is highly levered to risk and commodities.

Looking at this chart, the market will continue to see a lot of volatility, but I think the bounce makes more sense than anything else. That being said, I am going to look for signs of exhaustion after a short-term bounce to take advantage of. Ultimately, this is a market that is bouncing around between the 0.75 level above, and the 0.70 level underneath. This huge range gives us plenty of opportunity to trade back and forth from a longer-term standpoint.

AUD/USD Price Forecast Video 19.04.22

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