Australian Dollar Recovered During Tuesday’s Session

Australian Dollar vs US Dollar Technical Analysis

The Australian dollar has rallied during the trading session on Tuesday to show signs of life again, reaching near the 0.75 handle. This is an area that has caused a lot of noise as of late, so it will be interesting to see whether or not we can recapture it. The weekly candlestick from last week was a bit of a shooting star, so I am questioning whether or not we are going to completely recover, or are we going to find plenty of selling pressure in that area to send this market back down?

Keep in mind that the Australian dollar is highly levered to the commodity markets, and it does make quite a bit of sense that we would see a big fight just above. If we were to break down below the lows of the last couple of days, then it is likely that the market goes looking to reach the 50 Day EMA, maybe even the 200 Day EMA after that.

Keep in mind that the market has really rallied over the last couple of weeks, mainly due to the Reserve Bank of Australia suggesting that there is going to become a little more aggressive with tightening. By simply dropping the word “patience” from the statement, it suggests they are losing their sense of humor with inflation. However, the very next day the FOMC Meeting Minutes came out, suggesting that even more hawkish Federal Reserve than originally thought. In other words, I think you have a lot of noise in this area just waiting to happen.

AUD/USD Price Forecast Video 13.04.22

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